A recent study published by Shemansky Ben-Shahar illustrates just how different the social strata of Israeli cities are. The poll rated Israeli cities based on the fiscal investment that they invest in each of their residents. While affluent cities such as Tel Aviv invest between 4,000 – 6,700 shekel per anum for each resident they have, poorer cities often invest less than 1,000 shekel per resident.

Leading the pack after Tel Aviv which invests 6,700 per resident, is the city of Ra’anana which invests 6,158 shekel per resident. The poorest city in Israel, Rahat, invests only 218 shekel per year for every resident. Following Rahat is Kiryat Yam which invests only 360 shekel.  

The poll is was conducted using city reports for the year of 2014, and determine affluence or poverty based solely on the amount that each city invests in its citizens on average. It does not include government subsidies. According to Yediot news site, which published some of the highlights of the report, rounding out the top ten most affluent cities are Ramat Hasharon, Tirat Hacarmel, Herziliya, Eilat, Kiryat Bialik, Kiryat Gat, Nesher and Ramat Gan all of which invest more that 4,000 shekel per resident.  

Rounding out the poorest cities are Ofakim, Baqa Al-Garbiya, Dimona, Sderot, Shefaram, Bnei Brak, Tira, and Elad none of which hit the 1,000 shekel mark per resident.

The report listed city expenditures and investments in various categories including residential and communal improvements, education, art and culture and residential housing. While some cities spend more one category and less in another the overall totals show the affluence of each city according to the report.

In the majority of cases the investment by the city for each resident has a direct correlation to the cost of real estate in that city. The more the city invests, the higher the cost of real estate goes. An exception to this rule is of course Jerusalem, which was not one of top investors in its citizens but has the third highest cost of real estate in the country averaging 502,000 shekel per room. Only Tel Aviv and Herzliya were higher, with Tel Aviv ranking in at number one with the cost of real estate for each room in a house or apartment averaging 737,000 shekel.

With regard to the cheapest real estate in the country the list was quite different and signified a different set of of priorities among the poorer ranked cities. Kiryat Shemonah ranked as the cheapest city costing only 147,000 shekel for a room, followed by Ofakim, Beit Shean, Arad, Sderot, Dimona Migdal Haemek, Tiberias, Netivot and Safed.   

According to the poll, while there are numerous factors that affect the cost of real estate, among them are work opportunities, proximity to Tel Aviv, proximity to family and to public institution, the level of investment in that each city puts into its residents, also affects the real estate levels in the city.

A representative from Shemansky Ben-hahar said that “more affluent cities attract people who wish t live an affluent lifestyle and therefore come from or aspire to that background. While poorer cities attract people from a poorer population and socioeconomic background. Such a population requires less industrial and business property as likewise is exempt from paying city taxes.” Both of these factors contribute to the wealth of the city, and therefore cause a city to remain poor.