The findings indicate that one of the central factors in the rise in the cost of living in Israel is widespread criminal activity across the agriculture, construction, and housing industries.
A new study from Hashomer Hachadash and the Rifman Institute for Negev Development has found that organized crime costs Israel’s economy approximately NIS 23 billion and each household around NIS 8,000 a year.
The study, which was released on Sunday, was based on data collected by the Finance Ministry, the Tax Authority, and the State Comptroller.
The findings indicate that one of the central factors in the rise in the cost of living in Israel is not related to rising energy costs or global supply chain issues, but rather to widespread criminal activity across the agriculture, construction, housing, vehicle, and other industries.
For example, the study found that in the construction industry, protection rackets can cost companies up to 5% of a project’s total budget. To offset that expense, apartment prices are raised, leading to rent prices across the country rising by tens of thousands of shekels in total.
The price of fresh produce in Israel has also risen, with approximately 93% of farmers in the eastern Galilee and 90% in the Negev reporting extortion and threats.
Young Israelis after completing their military service help a lychee farmer at sunrise during the peak of the harvest season at his lychee orchard in Moshav Almagor near the Sea of Galilee, June 25, 2026. (credit: MICHAEL GILADI/FLASH90)
Car insurance premiums have increased by up to 56% due to rising break-ins, thefts, and vandalism.
Impact of crime on cost of living a ‘national crisis’ impacting every Israeli household
The founder and CEO of Hashomer Hachadash, Yoel Zilberman, decried the issue as a “national crisis that harms every home in Israel.”
“The public in Israel is paying a double tax today, once to the state and a second time to criminal organizations,” Zilberman asserted. “Anyone who thinks crime is only a matter of personal security must understand that it has become a driver for the cost of living.”
Zilberman blamed a lack of governance for the severity of the issue and called upon the State of Israel to take measures to lower prices and return the stolen shekels to citizens’ pockets.
Rifman Institute for Negev Development head Haggai Reznik claimed that the study points to a “deeper failure” than a mere rise in local prices.
The government’s response to the issue, Reznik asserted, must consist of “a combination of effective enforcement, civilian regulation and economic tools that will return responsibility and authority to the state.”
“This is not only an issue of internal security, but a national challenge of development, growth and strengthening the periphery,” Reznik concluded.