Israel Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth

Written by: Jae Seok An, Founder, Airbtics
Published: January 22, 2026

Israel Short-Term Rental Market Overview 2025

Average Occupancy Rate i
54.67%
Average Annual Revenue i
₪152,713
Average Daily Rate (ADR) i
₪754
YoY Supply Growth i
24.66%
YoY Revenue Change i
27.41%
Markets Analyzed
3

Number of Airbnb Listings Changes in Israel 2025

Which markets are experiencing rapid saturation?

A key consideration when entering a new short-term rental market is assessing whether it may become oversaturated. To evaluate this, we analyze the year-over-year supply change in Airbnb listings. The national average YoY supply change in Israel was 24.66% in 2025, indicating the overall growth trajectory of the market.

Markets with Largest Absolute Supply Increases in Israel

In absolute terms, Tel Aviv experienced the largest increase with +750 new listings added in 2025. This was followed by Eilat (+320 listings) and Jerusalem (+301 listings).

Markets with Fastest Relative Growth in Israel

In relative terms, Eilat experienced the most significant growth, with 32.17% more supply added over the 12-month period in 2025. Other rapidly expanding markets include Tel Aviv (+22.02%) and Jerusalem (+19.80%).

Short-Term Rental Revenue Trend in Israel 2025, and Future Outlook for 2026

Does increased supply necessarily indicate market saturation?

To assess market saturation, we examine year-over-year revenue trends. A decline in revenue per listing typically indicates heightened competition and potential oversaturation. The Israel average YoY change in revenue was 27.41% in 2025, representing an increase from $31,459 in 2024 to ₪152,713 in 2025.

Top Markets Revenue Performance

Tel Aviv

₪120,652 → ₪150,380 (+24.64% YoY)
🏠
Best Property Type Small (Studio - 1BD) • Budget ($)
🌍
Top Guest Origin Germany
✈️
International Guests (vs Domestic) 67.0%
💰
Average Daily Rate ₪697
📊
Occupancy Rate 58.0%
📅
Seasonality High seasonality

Eilat

₪118,049 → ₪142,981 (+21.12% YoY)
🏰
Best Property Type Large (4+BD) • Midscale ($$)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 12.0%
💰
Average Daily Rate ₪815
📊
Occupancy Rate 47.0%
📅
Seasonality High seasonality

Jerusalem

₪120,743 → ₪164,778 (+36.47% YoY)
🏰
Best Property Type Large (4+BD) • Budget ($)
🌍
Top Guest Origin United States
✈️
International Guests (vs Domestic) 50.0%
💰
Average Daily Rate ₪750
📊
Occupancy Rate 59.0%
📅
Seasonality High seasonality

For more detailed revenue YoY change analysis by market, access the Airbtics dashboard to explore specific market performance metrics.

Easiest Markets for Hosts in Israel 2025

Markets with high occupancy rates provide hosts with greater booking consistency, while markets with high booking volumes offer expanded opportunities across various property types and sizes.

Highest Occupancy Rate Markets in Israel 2025

Jerusalem recorded a year-round occupancy rate of 59.00%, which is among the highest in Israel. This was followed by Tel Aviv (58.00%) and Eilat (47.00%).

Highest Booking Volume Market in Israel 2025

Markets with high booking volumes present additional advantages, as they offer diverse opportunities across various property types and price points. The market that recorded the highest booking volume in Israel is Tel Aviv, with approximately 880,248 nights booked in 2025.

Regulatory Landscape

We define a professionalized or strictly regulated market as one where over 50% of active Airbnb listings hold valid license information, indicating consistent enforcement and higher compliance. Markets below this threshold are considered unregulated or lenient.

In Israel, 0 out of 3 markets fall into the professionalized / strict regulation category. For detailed license compliance data and market-specific regulatory insights, the Airbtics dashboard provides the percentage of listings with valid licenses for each market, enabling investors to assess regulatory risk at a granular level.

Which Israel Markets Are Growing Healthily vs Overheating?

Understanding market saturation requires looking at both supply growth and revenue trends together. Markets are categorized by comparing their YoY supply and revenue changes against Israel's national averages. Markets where supply is growing faster than revenue (relative to national averages) may be approaching saturation, while markets with below-average supply growth but above-average revenue growth may present hidden opportunities.

Benchmark: Markets are categorized relative to Israel's national averages (Supply: 24.7%, Revenue: 27.4%). Markets above the national average are marked with ↑, while those below are marked with ↓.

🟢

Healthy Growth

Supply > avg, Revenue > avg
Expansion with demand keeping up

  • No markets in this category
🟡

Early Saturation

Supply > avg, Revenue ≤ avg
Competition rising

  • Eilat Supply: +32.2% | Revenue: +21.1%
🔵

Under-the-Radar

Supply ≤ avg, Revenue > avg
Hidden opportunities

  • Jerusalem Supply: +19.8% | Revenue: +36.5%
🔴

Declining

Supply ≤ avg, Revenue ≤ avg
Risky markets

  • Tel Aviv Supply: +22.0% | Revenue: +24.6%

For the latest updates of the market data in Israel, check out our Best Airbnb Markets in Israel.

Data methodology

All metrics are calculated using active short-term rental listings tracked weekly by Airbtics. Revenue, occupancy rate, ADR, and supply growth are estimated from historical booking calendars, listing activity, and proprietary aggregation models.

Source: Airbtics
Learn data methodology →

Cite this report

Airbtics (2026). Israel Short-Term Rental Market Review 2025: Revenue, Occupancy & Supply Growth. https://airbtics.com/short-term-rental-market-report-2025-israel

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