Cost of living in Jerusalem, prices and what it is like to live for an Expat, quality of life / hardship, and compare cost of living for Expatriates as at January 2023.

What is it like to live in Jerusalem?

Jerusalem: Jerusalem is the capital of Israel and its largest city.

Economy: Historically, Jerusalem's economy was supported almost exclusively by religious pilgrims, as it was located far from the major ports of Jaffa and Gaza. Jerusalem's religious landmarks today remain the top draw for foreign visitors, with the majority of tourists visiting the Western Wall and the Old City. The government, cantered in Jerusalem, generates a large number of jobs, and offers subsidies and incentives for new business initiatives and start-ups.

Inflation: 5.2% for Israel as at February 2023.

Jerusalem Population: 1.2 Million (Metro) (2022 est.)

Expat Life: Israelis tend to converse at a much closer physical distance than in the West. A handshake is an appropriate greeting, and a smile at initial contact is important. Expatriate dress code for men is typically a shirt and tie, while women generally wear a blouse with either slacks or a skirt, but should dress modestly if passing through ultra-Orthodox Jewish areas. The safety risk for expatriates in Israel is generally low to medium. Risks include militant terrorist attacks, arbitrary rocket fire, petty crime such as theft, and poor standards of driving. Expatriates should be cautious not to offend local cultures and religious sensitivities with regard to dress and behaviour.

Health Care: Health care facilities are good but can be expensive. Hospitals may insist on payment and may delay departure until bills are met.

For other areas within the country see Israel.

Cost Of Living

What is the cost of living in Jerusalem?

The cost of living for expatriates in Jerusalem as at January 2023 is very high in comparison to other places in the world, with an overall Cost of Living Index (COLI), for all 13 basket groups, of 96.63 (New York =100). We have collected prices for the same items, world wide, based on Expat spending norms, in or closest to the location, and converted them to $USD so that we can compare the cost of 13 different baskets in 780 global locations. For each basket, compared to New York, the equivalent cost in Jerusalem is as follows:

1) Alcohol and/or Tobacco: Cost is very high for items such as beer, spirits, wine and tobacco related products such as cigarettes. A basket costing USD$1,000 in New York costs USD$1060. Average price in a store for a midrange bottle of wine is USD$14.55, domestic/local beer (500ml) USD$3.23, imported/international beer (330ml) USD$4.23 and a pack of 20 cigarettes is USD$12.73.

2) Clothing: Cost is very high for items such as business, casual and children's clothing and footwear. A basket costing USD$1,000 in New York costs USD$1270. Average price for an international brand of mens jeans is USD$84, a quality international brand of running shoes USD$106, mens leather shoes suitable for office wear USD$119 while a medium size international summer dress from a global chain store is USD$56.

3) Communication: Cost is low for various communication costs such as home telephone rental, internet subscription, mobile service provider tariff and data costs. A basket costing USD$200 in New York costs USD$144. Average price for a monthly standard plan internet subscription is USD$26, while the benchmark mobile tariff is USD$0.15 per minute.

4) Education: Cost is high for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees. A basket costing USD$30,000 in New York costs USD$30000. Average annual private international school fee (excluding extras) USD$19,457 for Primary School, and USD$21,652 for High School.

5) Furniture & Appliances: Cost is very high for items such as dining table and chairs, home entertainment, kitchen appliances, and sofas. A basket costing USD$2,500 in New York costs USD$3125. Average price for a 6kg front loader Washing Machine is USD$860, and USD$738 for a 46+'' LED UHD TV.

6) Groceries: Cost is very high for items such as consumables, cleaning products, dairy, fresh fruit & vegetables, general food products, snacks, soft drinks. A basket costing USD$1,000 in New York costs USD$1000. Average grocery prices in a major international retail store for 1 kg apples is USD$3.91, 1 kg oranges USD$2.02, 1 head lettuce USD$1.90, 1 kg potatos USD$1.30, 1 kg boneless, skinless, chicken breast USD$11.95, 1 kg cheddar cheese USD$16.70, 1 dozen large eggs USD$4.67, 500g loaf white bread USD$2.02, 1 L full cream milk USD$2.04, and 1.5 L water USD$2.15.

7) Healthcare: Cost is high for general heath care, doctor visits, hospital stays, non-prescription medicine, and medical insurance. A basket costing USD$1,000 in New York costs USD$870. Average healthcare cost for a private practice Doctor visit for an uninsured patient is USD$70, and a private hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs is USD$2,163.

8) Household Accommodation: Cost is very high for items such as apartment rent, house rent, property purchase, mortgage rate, and utilities. A basket costing USD$5,000 in New York costs USD$3450. Average expatriate house / apartment rent for a secure upmarket unfurnished apartment (3 bedrooms) is USD$4,012 in a central location, and USD$2,600 in a suburban location, per month, excluding utilities.

9) Miscellaneous: Cost is very high for items such as dry cleaning, linen, magazines, newspapers, office supplies, and postage stamps. A basket costing USD$500 in New York costs USD$610. Average price for dry cleaning (1 mens 2 pc suit) is USD$11.85, while an international newspaper is USD$3.65.

10) Personal Care: Cost is very high for items such as cosmetics, hair care, and toiletries. A basket costing USD$500 in New York costs USD$505. Average cost for a mens haircut and blow dry is USD$40, while a womens hair colour, cut and blow dry - medium length is USD$202.

11) Recreation & Culture: Cost is very high for items such as books, cinema, sport and theatre tickets. A basket costing USD$500 in New York costs USD$560. Average price for a latest release international cinema ticket (average of on and off peak where applicable) for one adult is USD$14.55, and an international fitness, recreation or sports club membership cost for one adult is USD$103 per month.

12) Restaurants Meals Out and Hotels: Cost is very high for items such as hotel daily room rates, meals and beverages in a restaurant, and take away food and beverages. A basket costing USD$1,000 in New York costs USD$930. Average cappuccino price (regular, medium) is USD$4.24, coke/pepsi (330ml) USD$2.98, burger meal (international franchise or similar) USD$18.20, and a mid-range international restaurant meal for 2 USD$90.97.

13) Transport: Cost is very high for items such as fuel (petrol/gasoline), car hire, public transport, vehicle purchase and maintenance. A basket costing USD$1,000 in New York costs USD$1210. Average average price over the last year for highest available octane petrol / gasoline (1L) is USD$1.78, while the benchmark car sedan purchase price including taxes/duties for a compact / small / economy vehicle (1.4 L) is USD$36,946.

How does the cost of living in Jerusalem compare?

Jerusalem is 40.6% more expensive than Houston TX for groceries, 134.6% more expensive for household costs than Kuala Lumpur, and 76.7% more expensive for transport costs than Dubai.

What is the quality of life / hardship in Jerusalem?

Jerusalem is ranked as a high degree of hardship location.The hardship premium for Jerusalem for an expat from Perth, is for example 20%, i.e. host location (Jerusalem) premium of 30% minus home (Perth) location premium of 10%.

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