Kochav Yaakov was established in 1984 and is currently home to about 600 families. The town’s population is diverse; the town has absorbed immigrants from South America, France, the United States and more. The population is composed of academics, teachers, rabbis and various other professions. In 2000, an ultra-Orthodox neighborhood was established adjacent to Kochav Yaakov, called Tel Zion, which includes 700 densely built housing units.

There are several educational institutions in Kochav Yaakov as well as local businesses including a carpentry shop, welding workshop, garage, pizza store and falafel restaurant.