Let’s not sugarcoat it: Israel is expensive. Like, really expensive. If you’ve been researching the cost of living in Israel or wondering “is Israel expensive,” you’ve probably seen the rankings that put it among the top 10 most expensive countries in the world. That’s not exaggeration or anti-Israel propaganda – it’s just reality.
But here’s what most articles about Israel’s high costs don’t tell you: there’s a way to experience living in Israel that makes it surprisingly affordable, especially for young adults. We’re going to break down exactly what things cost in Israel, then show you how thousands of people your age manage to live there for months without breaking the bank.
Is Israel Expensive? The Honest Answer
Yes. Israel is one of the most expensive countries in the world. It consistently ranks alongside places like Switzerland, Norway, and Singapore in cost-of-living indexes. Tel Aviv regularly appears on lists of the world’s most expensive cities, competing with New York, London, and Hong Kong.
For context, living in Israel costs about 20-40% more than the average American city. It’s more expensive than most of Europe. The prices can be shocking if you’re not prepared for them.
But – and this is important – being expensive doesn’t mean it’s unaffordable or inaccessible. It just means you need to understand the costs and plan accordingly. More importantly, it means you need to know the strategies that make living in Israel possible for people who aren’t wealthy.
Cost of Living in Israel: The Complete Breakdown
Let’s get specific about what things actually cost. These are 2025 prices based on current exchange rates and real expenses from people living in Israel.
Housing Costs in Israel
This is where it gets painful. Housing is far and away the biggest expense for anyone living in Israel.
Tel Aviv (most expensive):
- 1-bedroom apartment: $1,500-2,500/month
- Studio apartment: $1,200-1,800/month
- Room in shared apartment: $600-900/month
Jerusalem (second most expensive):
- 1-bedroom apartment: $1,200-2,000/month
- Studio apartment: $900-1,400/month
- Room in shared apartment: $500-800/month
Haifa (more affordable):
- 1-bedroom apartment: $900-1,500/month
- Studio apartment: $700-1,100/month
- Room in shared apartment: $400-700/month
Smaller cities (Beer Sheva, Netanya, etc.):
- 1-bedroom apartment: $700-1,200/month
- Shared room: $350-600/month
Add utilities (electricity, water, internet) and you’re looking at another $150-200/month. So realistically, if you’re trying to live independently in Tel Aviv, you need at least $1,800-2,700 monthly just for housing and utilities. That’s before you’ve eaten a single meal or gone anywhere.
Food and Grocery Costs
Supermarket shopping in Israel costs about 20-30% more than in the US. Here’s what you’ll pay:
- Weekly groceries for one person: $75-125
- Monthly grocery budget: $300-500
- Casual restaurant meal: $15-30 per person
- Nice restaurant dinner: $40-70 per person
- Coffee at a café: $4-6
- Beer at a bar: $7-10
- Street food (falafel, shawarma): $6-10
The good news is that Israeli street food is delicious and relatively affordable. The bad news is that if you’re eating out regularly, you’re easily spending $500-800/month on food.
Transportation Costs
Israel has good public transportation, but it’s not cheap:
- Monthly bus/train pass: $60-80
- Single bus ride: $1.50-2
- Taxi ride across the city: $10-20
- Rental car: $40-60/day
- Monthly car rental: $800-1,200
- Gas: approximately $6.50/gallon
Most young people rely on public transit, which works well in major cities. But even that $60-80 monthly pass adds up when you’re budgeting.
Entertainment and Daily Life
Going out and doing things in Israel isn’t cheap either:
- Movie ticket: $12-15
- Gym membership: $50-80/month
- Bar/club cover charge: $10-25
- Drinks at bars: $8-12 each
- Museum entry: $10-20
- Concert/event tickets: $30-100+
The one major exception? Beaches are free. If you’re living near the coast, you have free entertainment right there. But everything else costs money, and those costs add up fast.
The Bottom Line: Monthly Cost of Living in Israel
Let’s add it up for different lifestyle levels:
Bare minimum budget (shared housing, cooking at home, minimal going out):
- Shared room: $600-800
- Food/groceries: $250-350
- Transportation: $60-80
- Phone: $15-20
- Entertainment: $100-150
- Total: $1,025-1,400/month
Comfortable lifestyle (own place, regular dining out, social life):
- 1-bedroom apartment: $1,500-2,000
- Food + eating out: $500-700
- Transportation: $100-150
- Phone/internet: $50-70
- Entertainment: $300-400
- Total: $2,650-3,620/month
Those are real numbers. For young adults trying to experience Israel, coming up with $2,000-3,000+ monthly is basically impossible unless you have significant savings or wealthy parents.
The Problem: Israel Feels Out of Reach for Most Young Adults
Here’s where it gets frustrating. You want to experience Israel – maybe work there, study there, volunteer there, or just live there for a while. But the math doesn’t work.
If you’re visiting as a tourist:
- Flights: $800-1,500
- Hotels: $100-300/night
- Eating out every meal: $50-80/day
- Activities and tours: $50-100/day
- A 10-day trip costs $3,000-5,000 easily
You spend thousands of dollars for a surface-level experience where you’re staying in hotels, eating at tourist restaurants, and never really understanding what life in Israel is actually like.
If you try to live there independently:
- Need $2,000-3,000/month minimum
- Need to find an apartment (difficult without Hebrew)
- Need to set up utilities, phone, internet (bureaucracy nightmare)
- Need to navigate everything in Hebrew
- Need savings of $10,000-15,000 to last several months
Most young adults simply can’t do this. Which means Israel remains this place you visit briefly or don’t experience at all.
The Solution: How Masa Programs Make Israel Affordable
This is where everything changes. Through Masa Israel Journey, we’ve figured out how to make living in Israel accessible and affordable for young adults aged 18-30.
The breakthrough isn’t complicated – we handle all the expensive, difficult parts (housing, insurance, coordination) through government subsidies and organizational partnerships. You pay a subsidized program fee and your personal expenses. Suddenly, living in Israel for months becomes cheaper than a 10-day tourist trip.
Here’s what actually changes when you come through Masa instead of trying to do it on your own.
What’s Included in Masa Programs (And What It’s Actually Worth)
Housing: Worth $1,000-2,000/month You get a furnished apartment, usually in the Tel Aviv area or Jerusalem depending on your program. It’s move-in ready – bed, kitchen equipment, everything. Utilities are included. There’s no apartment hunting, no negotiations with landlords who barely speak English, no furniture shopping. You show up and you have a place to live.
Health Insurance: Worth $100-200/month Comprehensive health coverage is included. You’re not navigating the Israeli healthcare system alone or worrying about what happens if you get sick or injured. Emergency support is built in.
Transportation: Worth $200-400/month Transportation to your program activities is provided. Many programs include a Rav Kav (Israeli transit card). Group trips around Israel are organized and covered. You’re not constantly calculating transportation costs.
Hebrew Language Classes: Worth $500-1,000/month Every Masa program includes ulpan (Hebrew classes). If you paid for private Hebrew instruction separately, it would cost $500-1,000 monthly easily. With us, it’s built into your program.
Professional Development/Academic Instruction: Worth $500-2,000/month Depending on your program, you get internship placement, academic courses, professional training, or volunteer coordination. This isn’t just housing – you’re gaining actual skills and experiences.
Support and Coordination: Invaluable 24/7 staff support, visa assistance, help navigating Israeli bureaucracy, built-in community of other international participants. You’re not figuring out Israel alone.
Add it all up: Masa programs include $2,500-4,500 worth of value monthly. That’s what it would cost if you paid for everything separately.
What Masa Programs Actually Cost You
Instead of paying $2,000-3,000+ per month to live in Israel independently, our programs work differently. We handle all the major expenses through government subsidies and organizational partnerships, so you’re only responsible for:
The subsidized program fee – This covers housing, insurance, Hebrew classes, program coordination, transportation to activities, and all the support you need. Because these programs are heavily subsidized by the Israeli government and Jewish Agency, the fees are a fraction of what these services would cost independently.
Your personal expenses – Food, social activities, weekend trips, coffee, shopping – the things you’d spend money on anywhere. Most participants budget $400-1,200 per month depending on lifestyle.
Flights – Round-trip flights to Israel typically run $800-1,500 from the US.
The exact program fee depends on the type and length of experience – volunteer programs, career internships, academic programs, and gap year experiences all have different structures. But across the board, what you pay is dramatically less than what it costs to access these same experiences independently.
Want to know specific costs for programs that interest you? Contact us and we’ll break down exactly what you’d pay based on your situation and the financial assistance you qualify for.
How This Compares to Other Options
Traditional study abroad in Europe or Asia: Most semester programs cost $12,000-20,000 and include tuition, housing, and some activities. That’s 4 months typically. Our programs offer similar or longer durations for comparable or lower costs, but with more included – Hebrew classes, organized trips throughout Israel, comprehensive insurance, 24/7 support, and career/volunteer experiences built in. You’re not just taking classes – you’re gaining real-world experience.
Independent living in Israel: Remember those $2,000-3,000 monthly minimums we calculated earlier? Through Masa, your monthly costs drop dramatically because we cover the major expenses. You’re focused on your personal spending, not scrambling to pay rent and figure out Israeli bureaucracy.
Tourist travel: A 10-day tourist trip costs $3,000-5,000. Through Masa, you can live in Israel for weeks or months for a comparable investment, but actually experience daily life instead of staying in hotels and eating at tourist restaurants.
The Math That Makes It All Make Sense
Let’s compare directly what you’d spend trying to live in Tel Aviv independently versus coming through Masa for 4 months:
Living independently in Tel Aviv (4 months):
- Rent + utilities: $7,200-9,600
- Food: $1,200-2,000
- Transportation: $400-600
- Phone/internet: $200-280
- Hebrew classes: $2,000-3,000
- Insurance: $400-600
- Random expenses: $800-1,200
- Total: $12,200-17,280
Masa program (4 months):
- Housing: Included
- Utilities: Included
- Hebrew classes: Included
- Insurance: Included
- Transportation to activities: Included
- Program coordination & support: Included
- Personal expenses (food, social, etc.): What you budget for yourself
- Your investment: A fraction of independent living costs
The difference is dramatic. Everything that makes Israel prohibitively expensive – rent, utilities, Hebrew instruction, insurance, navigating bureaucracy – we handle through subsidized programs. You’re responsible for your lifestyle expenses, which you’d have anywhere.
What You Actually Spend Money On During Masa
So if housing, Hebrew classes, insurance, and transportation are covered, what do you need money for? Here’s what participants typically spend on:
Weekend trips around Israel: You’ll want to travel on weekends – Dead Sea, Eilat, northern Israel, etc. Budget $400-800 for trips over several months.
Personal food and groceries: Depending on your program, some meals might be provided. You’ll still want snacks, coffee, personal groceries. Budget $200-400/month.
Going out socially: Bars, restaurants, cafes with friends. This varies hugely by lifestyle but budget $300-500/month for a social lifestyle.
Shopping and personal items: Clothes, toiletries, random stuff you need. Budget $200-400 total for several months.
Coffee and cafes: Israeli café culture is real. If you’re a coffee person, budget $100-200/month.
Budget Recommendations from Masa Alumni
People who’ve done our programs recommend:
- Shop at discount supermarkets (Rami Levy, Shufersal Deal) not expensive ones
- Street food is your friend – delicious and affordable
- Take advantage of free stuff – beaches, parks, hiking
- Split rideshares with other program participants
- Do the included group activities instead of expensive tours
- Cook with friends instead of eating out every night
Realistic monthly personal spending:
- Minimal lifestyle: $400-600/month
- Comfortable lifestyle: $800-1,200/month
- Living it up: $1,500-2,000/month
Financial Assistance Makes It Even More Affordable
Here’s something most people don’t realize until they start applying: we provide significant financial assistance to most participants.
We offer grants of $500-4,500 based on program length, country of origin, and need. Additional scholarships are available based on financial circumstances. The majority of Masa participants receive some level of financial support.
A program with a $12,000 listed fee might actually cost you $5,000-7,000 after grants and scholarships. A $6,000 program might come down to $2,500-3,500.
The key is to apply for financial assistance and not assume programs are unaffordable based on the sticker price. We want to make these experiences accessible, and the funding exists to do that.
Other Funding Sources
Many participants piece together funding from multiple sources:
- Masa grants (most common)
- University study abroad scholarships
- Jewish community scholarships (local federations, synagogues)
- Family fundraising and support
- Personal savings from working before the program
Don’t let the initial costs scare you off without exploring every funding option available.
How to Make Israel Affordable: Your Action Plan
Here’s the thing – Masa programs aren’t just about making Israel affordable. They’re about making the experience better.
You’re not just surviving on a budget in some hostel, eating instant noodles, and trying to figure out the bus system. You’re living in quality housing in desirable areas. You’re learning professional skills or earning academic credit. You’re building a network of international friends who become lifelong connections.
You leave with Hebrew language skills, international work experience, a deeper understanding of Israeli society, and personal growth that only comes from truly living somewhere rather than just visiting.
Compare what you get:
10-day tourist spending $4,000:
- Sees major tourist sites
- Stays in hotels
- Eats at tourist restaurants
- Limited actual interaction with Israelis
- Surface-level understanding
- Photos for Instagram
Masa participant living in Israel for months:
- Lives like a local in real neighborhoods
- Makes Israeli friends and professional connections
- Works or studies alongside Israelis daily
- Learns conversational Hebrew
- Deep cultural understanding
- Resume-building international experience
- Skills and networks that benefit future career
- Lifetime friendships with people from around the world
- All at a cost that’s accessible, not prohibitive
Which experience would you choose? The deeper, longer, more meaningful experience is also the more affordable one. That’s the Masa value proposition.
How to Make Israel Affordable: Your Action Plan
If you’re reading this thinking “I want to experience Israel but I thought I couldn’t afford it,” here’s exactly what to do:
Step 1: Browse Masa Programs Go to masaisrael.org and explore programs that match your interests – volunteer, career/internship, gap year, or academic. Filter by duration and focus area.
Step 2: Understand What You’re Responsible For The subsidized program fee plus your personal expenses (food, social life, weekend trips). Get clear on what’s included versus what you pay for yourself.
Step 3: Apply for Financial Assistance Immediately Submit your application for Masa grants and any other scholarships you’re eligible for. This is non-negotiable – do not skip this step. Financial aid transforms what’s possible.
Step 4: Compare to Your Alternatives What would you spend on a normal vacation? What does a semester of college cost? What would studying abroad elsewhere cost? When you factor in everything Masa includes, the value becomes clear.
Step 5: Talk to Us Contact our team. We help people figure out budgets and funding every single day. We can walk you through exactly what you’d pay based on your situation and the financial assistance you qualify for.
Don’t Let Cost Keep You from Israel
The cost of living in Israel is high – we’re not going to pretend otherwise. But that doesn’t mean experiencing Israel is only for wealthy people or that you need to settle for a brief tourist visit.
Through Masa Israel Journey, we make living in Israel accessible and affordable for young adults. We handle the expensive parts through subsidies and partnerships. We provide housing, insurance, Hebrew instruction, and comprehensive support. You pay a subsidized program fee and your personal expenses, and suddenly spending months in Israel costs less than you’d spend on a week-long vacation.
Thousands of young adults experience Israel through our programs every year. They come from all economic backgrounds. They don’t all have wealthy parents or huge savings accounts. They just know how to access the resources and programs that make it possible.
Ready to see how affordable Israel can be for you? Contact us to learn about programs, specific costs, and the financial assistance you qualify for. We’ll help you figure out exactly what you’d pay and create a realistic budget that works for you.
Don’t let the high cost of living in Israel keep you from one of the most transformative experiences of your life. There’s a way to make it work – and we’re here to show you how.
