Santa Monica, California Housing Market

What stands out in Santa Monica?

• Prices were above the year before in 47% of months: among the least consistent price growth of 765 tracked cities. Price growth here is unreliable. Do not count on it.
• 71% of occupied homes are rented: among the highest renter shares of 765 tracked cities. The tenant pool is deep.
• The median asking price is $1,778,985: one of the priciest of 765 tracked cities. Entry costs are high, so cash flow is harder. Price growth has to do more of the work.

How far have Santa Monica prices fallen?

Asking price per square foot in Santa Monica is 12.7% below its Jan 2022 high and down 5.9% over the last year. Prices were above the year before in 47% of months since the data starts, so drops here have not always reversed quickly. 12% of sellers have cut their price. Underwrite with no price growth for now and let the seller carry the next cut.

How much more is for sale in Santa Monica than before the pandemic?

There are 233 homes for sale in Santa Monica, 56% more than in 2017–2019 at this time of year. That count is down 6% on last year, with 88 new listings this month. The build-up is biggest in 90404 (44 for sale, 140% above its 2017–2019 level) and 90403 (61 for sale, 81% above its 2017–2019 level). More choice means you can walk away from any home priced for the market of three years ago.

Is now a good time to buy in Santa Monica?

The median asking price is 44.6% below its Feb 2023 peak. Per square foot the gap is smaller: 12.7% below the Jan 2022 high. Part of the drop is smaller homes coming to market. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. Santa Monica prices rose in just 52 of 111 months. Prices here mostly do not grow. Buy this market for rent income.

This market is turning. Which way is not settled yet. Check the monthly numbers above before you commit.

How much can you negotiate in Santa Monica?

For every 100 homes still for sale, 26 are under contract. In 2017–2019 at this time of year it was 46. The rest are still waiting for a buyer. Few sellers are dropping their price. Your discount will come from one stale listing.

The typical Santa Monica listing has been on the market 48 days. That is 11% shorter than a year ago. There are 233 homes for sale in Santa Monica. That is 2.6 times the tightest month on record, but below the peak of 268. Supply is shrinking against last year.

What to do about it

• Start in 90401, 90404, and 90405, where sellers are weakest: in 90401, 8% of sellers have cut and the typical listing has been up 98 days.
• Look for listings older than 60 days with a price cut.

Who will rent from you in Santa Monica?

Most Santa Monica households rent. 71 out of every 100 households are renters. That share has held steady for five years. Santa Monica added about 1,800 renter households in five years. Renter households average 1.7 people. Singles and couples rent here. Two bedrooms beat four.

Households grew 5% in five years. The housing stock grew 5%. The two are moving in step. 11.2% of homes sit empty. Tenants have options. Budget extra weeks of vacancy between leases.

The median Santa Monica household earns $118,397 a year. Incomes here have grown 3.4% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 15.0 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. At 30% of income, a tenant on the median income can pay about $2,960 a month.

To see what one Santa Monica address would rent for and cash flow, run it through the app.

How does Santa Monica compare with other California markets?

Ranked among the 141 California markets we track:

• Asking price: 9th priciest of 141. Santa Monica is at $1,778,985. Closest: Redwood City and Danville.
• Buyer competition: 16th least competitive of 138. Santa Monica is at 0.26 buyers per home. Closest: Davis and Newport Beach.
• Time on market: 60th shortest time on market of 141. Santa Monica is at a median of 48 days on market. Closest: Sacramento and Lodi.
• Price cuts: 11th fewest price cuts of 141. Santa Monica is at 12% of sellers cutting. Closest: Richmond and Pasadena.

What numbers should you underwrite a Santa Monica deal with?

• Price growth to assume — -0.6%/yr. Santa Monica has grown about 0.6% a year for five years and for ten. That pace held before and after the 2020–2021 boom, so it is a fair long-run input. Prices fell 5.9% over the last year. Use it for timing. The five-year rate is the better guide.
• Odds you cut your price to sell — 1 in 9. 12% of Santa Monica listings have cut their asking price. Underwrite your exit below asking.
• Competition when you exit — -6%. Homes for sale in Santa Monica are down 6% on last year, so your resale faces less competition than today's comps did.

Read how price cuts signal a market turning and how we read these numbers, then run the numbers on a deal.

What is the median home price in Santa Monica?

The median asking price in Santa Monica is about $1,779,000 as of Sep 2026, about the same as a year ago. The typical listing is 9% larger than a year ago, and asking price per square foot is down 5.9%. So the size of homes on the market explains much of the drop. This is the asking price on homes listed for sale. Sites that report sold prices or estimated home values will show a different number. Our Santa Monica figures cover the 8 ZIP codes with a Santa Monica mailing address, which can reach past city limits.

Is Santa Monica a buyer's or seller's market in 2026?

Neither side has the upper hand in Santa Monica right now. We compare Santa Monica with 2017–2019 at this time of year: there are 26 pending sales per 100 listings, against 46 then; there are 56% more homes for sale; 12% of sellers have cut their price, against 11% then.

Are Santa Monica home prices going up or down?

The median asking price is 44.6% below its Feb 2023 peak. Per square foot the gap is smaller: 12.7% below the Jan 2022 high. Part of the drop is smaller homes coming to market. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

Which Santa Monica ZIP code has the most negotiating room?

90401. Only 10 homes under contract for every 100 still for sale. 8% of sellers there have cut their price, and the typical listing has been up 98 days.

What is the best month to buy a house in Santa Monica?

Across 9 full years, Santa Monica asking prices ran lowest in October, about 4.5% below the year's average. They peaked in March. The most homes for sale show up in October, about 18% above the yearly average.

What price growth should I assume for Santa Monica?

Assume -0.6% a year. Santa Monica has grown about 0.6% a year for five years and for ten. That pace held before and after the 2020–2021 boom, so it is a fair long-run input. Prices fell 5.9% over the last year. Use it for timing. The five-year rate is the better guide.

What is the fair market rent in Santa Monica?

HUD's fiscal year 2026 fair market rent for Los Angeles County is $2,601 a month for 2 bedrooms and $3,298 for 3 bedrooms. The figures include tenant-paid utilities and cover the whole county.