Photo Credit: Barry A. Kaplan
Haredi women work at Concept Creative Technology, a subsidiary of Beit Shemesh-based NetSource.

A new study shows that Haredi Israelis are behind the financial eight ball more than other sector even though their monthly benefits form the government are 60 percent more than others

The Taub Center for Social Policy’s 2014 State of the Nation report, blamed high housing costs as the main reason households cannot make ends meet.

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Haredi families, which on average have far more children than secular families, spent nearly $00 (3209 shekels) more than their income, compared with approximately $214 (864 shekels) for non-observant families.

The gap among Muslims was nearly $500 (1919 shekels).

Monthly benefits, other than earned income, for Haredim was slightly more than $800 (3256) shekels a month.

The report cited housing costs as the biggest problem for Israeli families to end the month without an overdraft.

Even families with both spouses working have a hard time being able to afford a $250,000 mortgage to buy a home, and the amount could be double that much in the Tel Aviv or Jerusalem.

However, a large number of husbands in Haredi families learn in yeshiva and rely on a stipend and their wives’ income.

The Bank of Israel, both under the guidance of Stanley Fischer and now his successor Karnit Flug have urged the government to encourage Haredim to enter the work force and be more self-reliant.

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10 COMMENTS

  1. While it’s true there are cheaper places to live than Jerusalem the fact is that there are no rent control laws to help a renter in this country. No rent stabilization, no cap. The typical landlord owns an apartment (or two or three) not an entire building and can raise rents as high as they like.

    The income/expense gap is much larger in Israel than anywhere else in the world. It’s been documented with studies I have seen over the years just can’t find it now to paste here.

    In 2012 half of the Israelis were earning under 5,000₪/month which is not much to live on. What you buy here is priced closer to U.S. prices. Many, many People do not get annual pay raises in this country but expenses keep going up.

    I recall seeing an article in ha’aretz that stated that only the top 20% of Israelis can save while everyone else needs to live with overdraft to make ends meet. Therefore, highlighting the haredi seems not to be an objective study.

    American Olim get very frustrated in this country and one of the reasons for the high failure rate of retention is the ability to earn a decent living. It’s a small country with their own way of doing things. While internationally this country does well in the market exporting innovation, the internal market is not as expansive in opportunities.

  2. There are supposed to be rent controls from January re how much the landlord can put the rent up each year and to encourage longer leases so people don’t have to move all the time….also people will have to be told how much the previous rent was before they sign the contract…or so I read
    …anybody else know about this?

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