If you have the means and the desire to live in one of the most desirable areas in the US, the Santa Monica real estate market is one to watch.
Santa Monica, California real estate has historically been a competitive hotbed – a trend that will likely continue well into the future. In the following, we’ll examine several pieces of information to help inform you about current conditions and what to expect when buying or selling a Santa Monica home.
How Much Does it Cost to Live in Santa Monica?
While not all areas in the US require a close examination of living expenses, the cost of living in Santa Monica is worth considering for those not relocating from other notoriously high-priced areas.
What is the Average Home Price in Santa Monica?
Being in Santa Monica puts residents close to endless entertainment and a beautiful oceanfront at the cost of being one of the least affordable cities in the country. The average monthly mortgage payment is around $3,637, compared to a regional average of $1,321. And the Santa Monica median home price averaged $1.99 million throughout 2023, with recent sales climbing to $2.19 million in 2024.
The Santa Monica real estate market has softened since last year when sale-to-listing averages shot above 100%. Still, based on an average income for the area of $76,710, households should expect to pay around 40% of their annual pay on household bills.
On the flip side, not everything in Santa Monica is quite so costly as the town embraces its identity as a popular tourist destination that’s otherwise affordable with a nominal income. Santa Monica may not be a good fit for everyone – but part of the appeal for some! – and simply means moving to Santa Monica from out of state, which might mean adjusting your budgeting and spending.
Buying and Selling Real Estate in Santa Monica, California
Between charming west-coast neighborhoods and stunning condominium living, there are a variety of choices to suit your lifestyle.
Let’s quickly look at a few of the most sought-after facts most folks seek when searching the Santa Monica real estate market for homes.
- You’ll need a conventional loan for most homes. The FHA limit for single-family homes in Los Angeles County is $1.14 million, meaning buyers relying on a mortgage will need either an FHA jumbo loan or a conventional loan. As with any home-buying endeavor, use a mortgage calculator to help prepare an appropriate budget, and visit our home-buying checklist for more insight into the process.
- The public schools are decent. One nice feature of Santa Monica, California real estate for families with school-age children is that the Santa Monica public schools are solid options for education. This is ideal for parents who want a good education for their children without the extra expense of a private school.
- Walking is an option in Santa Monica, but not so much for the rest of LA. The layout of Los Angeles County can take some getting used to, as there are areas like Santa Monica that are their own cities while others are part of LA. Santa Monica is only 8.3 square miles, and getting around is relatively easy. However, other parts of greater LA have a reputation for terrible traffic, much like Chicago or New York. Factor in gas prices into your budget as you consider the cost of living in Santa Monica and what your commute may entail.
- Avoid buying undeveloped land in the hills unless you know exactly what you’re doing. There are usually inexpensive plots of land up in the hills, which seems attractive at first glance. However, the logistics of building a livable home on this terrain is a challenge even for seasoned developers. It requires an immense amount of expensive prep work in addition to red tape from the county and certain neighborhood authorities. Furthermore, If you’re thinking about a tiny home arrangement, LA County is not the place to do it – unless it’s a secondary structure on a parcel of land.
- LA has unique rules for businesses. Legislation for LA County tends to be stricter than almost every other county in the US. For example, the LA County Department of Public Health holds food service establishments and vendors to higher standards, impacting everyone from brick-and-mortar restaurants to food trucks. If you’re the entrepreneurial sort, make sure you examine local laws closely before relocating to Santa Monica to open a business.
Selling a Home in the Santa Monica Real Estate Market
If you plan to move away from this lovely West Coast gem, finding a real estate agent should be one of your first priorities. Because of the relatively low inventory in the region, it’s usually easy for most home sellers to find a buyer for their home in roughly 30 days for the asking price, based on data from sources aggregated from our site and around the web.
For those struggling to sell their home, understand that current interest rates have culled some would-be homebuyers by raising expected mortgage payment amounts. As such, be prepared as many homebuyers seeking Santa Monica, California real estate are dependent on selling their existing homes. Also, understand that most Santa Monica home sales require one or more seller concessions to seal the deal.
Final Thoughts on the Santa Monica Real Estate Market
The city of Santa Monica is a small area, meaning it will never have enough supply for all the people who desire to live in this delightful location. For those intent on moving to the area, make sure to do your homework first to get your home-buying budget and professional affairs in order before making your move to one of the best cities on the West Coast.
