Are you looking to buy property in Santa Cruz, California? Sadly, you'll have your work cut out for you. Santa Cruz has the dubious honor of having some of the most unaffordable housing in the world. Just look at the local real estate news, and you'll see relatively small properties selling for over one million dollars.
So, what exactly is going on with the real estate market trends in Santa Cruz? Read on to learn more about current developments in this challenging segment of the California economy.
Critical Housing Shortage
The biggest problem in Santa Cruz is that there simply isn't enough housing. There's an incredible amount of demand, thanks to the large number of tech companies operating in the area. Tech pros have a lot of money to spend, and they're prepared to pay top dollar to experience coastal living.
The housing shortage is unlikely to let up any time soon. While there are some plans to build more real estate, any housing development project is controversial. For example, plans to build more high-rise housing units have seen fierce opposition from Santa Cruz locals.
Extremely Expensive Housing
Much of the Santa Cruz property news updates focuses on the staggering price of even modest housing. This is a market where a one-bedroom property is likely to cost over a million dollars. The cost of housing is so high that some real estate analysis claims Santa Cruz has the most expensive housing in the country.
One possible reason for this is that many tech professionals left the San Francisco Bay Area during the COVID-19 pandemic. The possibility to work fully or partially remotely has meant tech professionals looking for more space started flocking to Santa Cruz.
While the COVID-19 lockdowns are long gone, hybrid work is still quite common. Commuting to the Bay Area from Santa Cruz isn't too bad if you're not in the office much.
Future Outlook of Real Estate News in Santa Cruz
While most agree that the current real estate trends in Santa Cruz are making housing absurdly unaffordable, there's no consensus on a solution. The ongoing AI revolution means the tech industry in Northern California could grow even more, so the Santa Cruz housing market crisis likely won't be resolved on its own.
Potential solutions involve changes to zoning laws to allow higher density housing, or affordable housing initiatives, however these will take time, and many locals oppose them. Based on all these factors, it's probable Santa Cruz real estate will remain unaffordable and unattainable for the foreseeable future.
Looking for Santa Cruz Real Estate? You Need a Reliable Partner
If you want to even stand a chance of buying property in Santa Cruz, you'll need a local partner that understands the intricacies of the local housing market. In a housing market this hot, you can't just casually follow real estate news.
If you're serious about owning some of the most in-demand real estate in the world, PMI Santa Cruz is here to help. Purchasing property in Santa Cruz might seem like a long shot, but we'll use our decades of experience to give you the best possible chance of success.
Contact us today to learn more about how we can help you secure the property of your dreams.
