The coastal suburb of Santa Monica offers some of the most striking and scenic beach views and includes one of the most famous piers in the world. It also has top-rated schools, excellent health and emergency facilities, and options for recreation, making it an exclusive city in Los Angeles County to invest in real estate. Yet, Santa Monica's real estate market can be complex, especially with changing housing market trends in the U.S.
If you are looking for homes for sale in Santa Monica or property to invest in, getting more insights into the Santa Monica housing market is essential. While some potential property buyers may wait for the surging home prices to reduce, luxury real estate experts believe prices will continue to rise. But what can you expect from Santa Monica real estate? Read on to find out.
5 things to expect from Santa Monica real estate
Increased demand for outdoor access
Santa Monica is a beachfront city with several outdoor recreational activities, such as Muscle Beach, which offers an outdoor gym. Thus, most potential home buyers in Santa Monica are looking for homes with access to outdoor space and beach activities. These include properties with larger backyards, a pool, or close to the beach.
As a result, Santa Monica is likely to have an increasing demand for properties with outdoor access, particularly beachfront homes. Experts also believe that developers will construct more homes with outdoor rooftops and terraces, some being private while others left from the public. The intent is to meet the high demand for homes with outdoor access within the city.
The home value will increase at a slower pace
These trends are forecast to remain intact in the coming months, although appreciation will remain high in the coming months compared to the past year. Other elements likely to affect home value in Santa Monica include increasing interest rates and new listings likely to be added to the market. This shows that Santa Monica's median home value will gradually increase, like most cities in Los Angeles County.
Increase in renting costs
Real estate developers are also striving to develop more rental property to meet the demand, but homes are likely to grow prohibitively more expensive. With increasing home value, surging renting costs are forecast to complicate Santa Monica real estate. Luckily, David Dippong is the real estate agent that can help home buyers and sellers navigate the intricate Santa Monica housing market and get better deals.
Developers will be building for the future
Luxury real estate experts believe that larger apartment buildings capable of increasing density will likely solve the housing shortage in Santa Monica. Since a resurgence in property encourages homebuyers to buy and invest in beach homes in West LA and live close to the beach, new developments with larger apartments are expected to meet this demand. Besides, these structures are expected to align with tenants' changing needs and future lifestyle trends in Santa Monica.
Increased construction of new homes and larger apartments will also result in the development of better public transportation systems. The intent will be to have less parking for apartment buildings, designed to reduce demand for beachfront homes for sale in Santa Monica. This will also include determining how to provide parking areas designated for changing roles of vehicles, particularly charging points for electric cars.
Reduction in housing inventory
Santa Monica real estate predictions: the best neighborhoods to invest in
Downtown Santa Monica
Downtown Santa Monica is one of the most prevalent communities in the city, where you will find the Third Street Promenade and the Farmers’ Market. It is also near the Metro line, and people of diverse cultures live and work in the area. Although it lacks single-family homes, it features high-rise condos commonly found near Ocean Avenue and along Main Street. Other features that make Downtown Santa Monica a perfect spot to invest in include access to shops, bars, restaurants, and bakeries.
Palisades Beach Road
If you want to be part of the Santa Monica elite, Palisades Beach Road is home to some affluent people living in the city. Located close to Santa Monica beachfront, high-powered executives, icons in the entertainment industry, and owners of prominent chain corporations reside in this neighborhood. Palisades Beach Road is one of the most expensive areas in the U.S., with four-bedroom homes ranging from $5 million to $10 or $11 million.
Properties are also spread out across the area to ensure people who live here have the utmost privacy and personal space. If you are searching for small apartment complexes and apartment buildings in the neighborhood, Palisades Beach Road can be a perfect spot for you, since most people who live here are renters.
The neighborhood offers a mix of properties, including condos, apartments, and Craftsman-style bungalows. These include one-bedroom homes to three- to four-bedroom houses that are quite affordable. Besides homes for sale, this neighborhood features access to parks and a ton of shops, restaurants, and recreational activities than others in Santa Monica.