It all happens in the Center

The Tel Aviv and Gush Dan districts (the Center) combined are home to 3.3 million residents, or 41 percent of the country’s population.

By YAIR ASSAF-SHAPIRA
Population, construction and employment in Tel Aviv and center vs. Jerusalem districts, 2013-14 (photo credit: JIIS)
Population, construction and employment in Tel Aviv and center vs. Jerusalem districts, 2013-14
(photo credit: JIIS)
More than three million residents live in the center of the country, according to Central Bureau of Statistics (CBS) figures from December 2013. The Tel Aviv and Gush Dan districts (the Center) combined are home to 3.3 million residents, or 41 percent of the country’s population; the slightly larger Tel Aviv metro area population stands at 3.6 million.
The concentration in the Center is not a new phenomenon. Since the founding of the state, this area has held 41% to 51% of the country’s population. The percentage of the Center’s population has declined somewhat over the years due to the rapid population growth in the country’s southern district and the West Bank, but the Center remains the most populous region. The area is also attracting new residents, with a migration balance of approximately +5,000 annually during 2008-2010.
Employment is also concentrated in the Center. While it isn’t clear whether employment opportunities followed the population rise or the other way around, it’s obvious that the two have had an amplifying effect on each other. Forty- nine percent of the nation’s employees, 1.5 million people, work in the Tel Aviv and central districts – among them some 143,200 employees who commute from the North, South, Jerusalem and West Bank areas.
Another important factor in this equation is new construction. Demand and policy both influence where new construction occurs and thus, although the articulated policy is population dispersion, demand influences developers to continue building in the Center. CBS figures show that in 2013-14, 45% of new residential floor space was built in the Tel Aviv and central districts. The economic importance of this area is also reflected in the construction data: 71% of construction for commerce and business services took place in the Center.
The employment and construction rates in the Center exceed the activity levels that would be expected from its population figures, demonstrating the centrality and vibe that this area creates.
What about Jerusalem? The Jerusalem district’s population (including the city itself) accounts for 12% of the nation’s population, but a slightly smaller percentage (11%) of the employees in the country work in this district.
Housing construction in the Jerusalem district comprises only 10% of the country’s total (2013-14), and construction for commerce and business services, at 6%, is also relatively small for the population size. Construction for public buildings seems to be the one area in which the district stands out: 17% of building for public use took place in the Jerusalem district.
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