What’s Trending in Santa Cruz Real Estate in 2025

Santa Cruz has always been one of California’s most unique real estate markets. With its stunning coastline, eclectic culture, strong academic presence from UC Santa Cruz, and proximity to Silicon Valley, the area continues to attract buyers who want both lifestyle and long-term value. But like many coastal California markets, the local housing scene is constantly evolving.

As we move through 2025, buyers and sellers in Santa Cruz are navigating rising home values, shifting inventory levels, and new housing developments that aim to ease supply shortages. Whether you’re considering buying your first home here, investing in property, or selling in today’s market, here are the latest trends shaping Santa Cruz real estate.

📈 Rising Home Prices — With a Twist

One of the most noticeable trends in Santa Cruz real estate is that home prices continue to climb, especially within city limits. According to recent market data, the median sale price for homes in Santa Cruz reached about $1.6 million, an impressive 18% increase year-over-year.

County-wide, the growth has been more modest. Santa Cruz County’s median home price sits around $1.3 million, reflecting less than a 1% annual increase. What this shows is a market with pockets of hot growth (especially in desirable neighborhoods within the city) alongside areas where price appreciation is cooling.

For sellers, this means timing and location matter more than ever. Homes in prime coastal neighborhoods are still commanding strong offers, while homes further inland may see slower appreciation. For buyers, this shift presents an opportunity: while some areas feel out of reach, others are stabilizing, creating potential entry points.

Longer Days on Market & Higher Inventory

Another trend that stands out is how long homes are taking to sell. In the past, Santa Cruz was notorious for lightning-fast sales, often with multiple offers well above asking price. Today, the story is different.

• In the city of Santa Cruz, the average days on market is now 48 days, compared to just 31 days last year.

• Across the county, the average has stretched to about 51 days, up from 40 days a year ago.

This doesn’t mean buyers have the upper hand entirely, but it does mean the market is less frantic than it was in previous years. More inventory is also contributing to this trend.

Notably, the condo market has surged, with inventory climbing by more than 46% compared to last year. At the same time, condo sales are up slightly, and median condo prices have risen by about 4%. This suggests that buyers are exploring more affordable options and that attached housing is becoming a bigger part of Santa Cruz’s market story.

🔥 Santa Cruz Mountains: Affordable but Risky

One of the most fascinating micro-trends is happening in the Santa Cruz Mountains. This region offers homes at lower prices than the coast, which makes it appealing for buyers who want a foothold in the area without paying $1.5+ million for a property in town.

However, affordability comes with trade-offs. Buyers here face unique challenges:

• Wildfire risk is a growing concern, especially after the CZU Lightning Complex Fire in 2020.

• Insurance costs are rising, and in some cases, securing fire insurance is difficult.

• Many properties include land or structures that have sustained damage, requiring careful due diligence.

Still, the mountains remain popular, particularly with buyers willing to take on risk in exchange for lower purchase prices and a lifestyle surrounded by nature.

🏢 Multifamily and New Housing Developments

Santa Cruz, like much of California, faces a housing shortage, and 2025 is seeing continued momentum toward denser development. Several projects are shaping the city’s housing future:

• A six-story, 67-unit building on Mission Street recently advanced despite neighborhood opposition.

• In Scotts Valley, a nearby community within Santa Cruz County, a 19-townhome development has moved forward.

• The Santa Cruz Local Housing & Construction Tracker highlights numerous multifamily and mixed-use projects under review or in progress.

For renters and buyers, this means more options may soon be on the horizon. For investors, these developments highlight the region’s growing demand for rental and multifamily properties.

🌊 Lifestyle Still Drives Demand

Even with high prices, Santa Cruz remains a magnet for buyers seeking lifestyle-driven purchases. The city’s combination of beach culture, natural beauty, outdoor recreation, and progressive community values keeps demand strong. Many buyers are relocating from Silicon Valley and San Francisco, seeking more space, natural surroundings, and a slower pace of life while remaining within commuting distance of tech jobs.

Remote work has also reshaped demand. While some tech workers have returned to offices, the hybrid work model allows many families to live in Santa Cruz full-time, using occasional commutes to the Bay Area as a trade-off for a better quality of life.

💡 What This Means for Buyers

For buyers, today’s Santa Cruz market offers both challenges and opportunities:

• Be patient: With homes sitting longer, buyers can take more time to make decisions.

• Look beyond the coast: Inland neighborhoods and the mountains may provide more attainable entry points.

• Consider condos: With more inventory and smaller price increases, condos can be a smart way to enter the market.

• Plan for insurance: Especially in mountain areas, be proactive about securing coverage.

💡 What This Means for Sellers

Sellers can still achieve excellent results in 2025 — but strategy is critical:

• Pricing matters: Overpricing will likely lead to longer days on market.

• Staging & marketing: With buyers taking their time, presentation is key.

• Highlight lifestyle: Santa Cruz buyers care deeply about quality of life, so showcase proximity to beaches, parks, or schools.

• Work with an expert: An experienced local agent can help position your property competitively.

✅ Final Thoughts

Santa Cruz real estate in 2025 is marked by a mix of rising home values, increased inventory, and shifting buyer preferences. While the days of frenzied bidding wars may be slowing, demand for coastal California living keeps the market competitive.

For buyers, this is a time to explore options carefully, take advantage of longer timelines, and consider condos or mountain homes as entry points. For sellers, the key is strategic pricing and standout marketing to capture attention in a market that’s moving at a more measured pace.

One thing is certain: Santa Cruz continues to be a place where lifestyle and real estate intersect in powerful ways. Whether you’re drawn here by the ocean, the redwoods, or the vibrant culture, the housing market reflects just how special — and sought-after — this community truly is.