Santa Monica Market Guide 2025

Hayley Stange
Nov 4
4 min read

Santa Monica has always balanced two identities: a beach town and a global address. It is a place where tech founders jog past retirees on the bluffs, and where a morning walk can cost as much as a year’s rent somewhere else.

But behind the postcard-perfect views, the numbers tell a quieter story this year, one of stability.

The 2025 Santa Monica Market Report, prepared by Dogtown Realty’s own Ben Habakook, shows a market that has slowed, steadied, and settled into its own rhythm.

Santa Monica by the Numbers

As of late 2025, median home prices in Santa Monica have held largely steady since 2021.Single-family homes and condos have inched up, while multi-family properties have softened. Price per square foot for single-family homes continues to rise, while condos and income properties trend lower, reflecting a consistent preference for detached living.

The month-over-month price graph shows only mild movement, confirming that volatility has cooled. The market here is balanced and mature.

Median sale prices have held steady across Santa Monica, with single-family homes showing the most growth.

Minor monthly fluctuations show that Santa Monica’s market has leveled out after years of stronger swings.

Supply and Demand in Motion

Sales volume has slowed across all property types over the past six months. But even with fewer transactions, single-family homes dominate total dollar volume, which means higher prices and bigger stakes per sale.

At the same time, Days on Market have shortened for single-family homes while lengthening for condos and income properties. Detached homes remain the quickest to move, even as condos and smaller income buildings take longer to find the right buyer.

Total dollar volume is heavily concentrated in single-family homes despite slower overall sales.

Single-family homes continue to sell faster, while multi-family and condos take longer to close.

Rental Trends and Investor Insight

For renters, the picture has softened. Median lease prices peaked in 2023 and have eased slightly since, although they remain above 2021 levels. Vacancy has climbed above 8 percent, among the highest on the Westside, pointing to more available rental inventory after years of extreme tightness.

Still, with more than 60 percent of residents renting, Santa Monica remains one of the most tenant-driven markets in Los Angeles.

Lease prices have dipped slightly since 2023 but remain higher than before the pandemic.

Vacancy now tops 8 percent, marking a shift toward looser rental conditions.

For investors, this means a change in strategy. Long-term holds now outperform short-term plays as regulations tighten and ownership costs stay high.

Rising sale prices and cooling rents have pushed price-to-rent ratios higher for single-family homes.

Who Lives Here and How That Shapes the Market

Between 2013 and 2023, Santa Monica’s population has grown older, with the share of residents over 55 steadily increasing. The city has matured into an affluent, established community rather than an emerging one.

Median household income has climbed to roughly $100,000, supporting both stable prices and strong rental demand.

Santa Monica’s population is trending older, with growth in the 55+ age group leading the shift.

Incomes have risen consistently for a decade, reinforcing the city’s economic strength.

New Construction and What’s Coming Next

Most new construction permits issued between 2024 and 2025 were for one- to four-unit properties, reflecting a preference for small-scale infill projects rather than high-density builds.

Still, several large developments are shaping the city’s future:

1907–1933 Wilshire Boulevard: 260-unit mixed-use project with 26 affordable units
1133 Ocean Avenue (Miramar Redevelopment): 60 condos with new restaurant and retail space
1318 4th Street: City-owned site planned for 122 apartments, at least 25 percent affordable
2800 28th Street: 375-unit mixed-use proposal near the airport corridor
1650 Lincoln Boulevard: 98 apartments over retail
501 Broadway: 89 apartments above retail

Most new permits focus on smaller projects of one to four units.

Small projects cluster north and south, while denser developments rise in the downtown and coastal core.

What Buyers and Sellers Need to Know

For Buyers:Patience matters here. The best opportunities are hyper-local. Understand the differences between neighborhoods north of Montana, Ocean Park, and the Downtown core before setting expectations.

For Sellers:Santa Monica buyers are informed and selective. Pricing to the pocket, not the ZIP code, remains essential. Well-presented single-family homes continue to attract strong offers, especially below the $3 million range.

The Takeaway

Santa Monica is not chasing a boom. It is defining what a post-growth market looks like: steady, expensive, and deeply livable.

Prices are not surging, but neither are they slipping. The market is self-assured and knows its worth. Vacancy may rise and sales may cool, but the fundamentals: income, desirability, and limited space keep it resilient.

That is what makes Santa Monica Santa Monica. The ocean shapes its edges, but its value runs much deeper than the tide.

This analysis was prepared by Ben Habakook of Dogtown Realty.

The full 2025 Santa Monica Market Report is available for download below.

Download the complete 2025 Santa Monica Market Report here.