Daniel Zia, Real Estate Pro in Santa Barbara, CA

Why do people pay so much in housing costs to live in Santa Barbara?

Asked by Daniel Zia, Santa Barbara, CA Fri May 18, 2007

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What many people ask me before they visit Santa Barbara, is why would anyone move to Santa Barbara when housings costs, both renting and buying are so high. The answer is lifestyle. Santa Barbara has an incredible draw for people who want to live the vacation lifestyle. The weather is gorgeous almost all of the time. The beaches are clean, and warm, and not too crowded. There is great shopping, incredible dining, and a host of other attractions that make every day enjoyable. And a lot of other people don't mind buying or renting a smaller house, or a house with less amenities, because they don't spend much time inside when there is so much to do outside.
Web Reference: http://www.TheZiaGroup.com
3 votes Thank Flag Link Fri May 18, 2007
The short answer is that it's expensive to live there. The more complete answer is that there are less housing units than people who want to live there. The best answer is that it is, perhaps, the most beautiful city on the West Coast with Laguna beach and La Jolla close behind.
Web Reference: http://brian-brady.com
2 votes Thank Flag Link Fri May 18, 2007
Here is a follow-up on my first answer:
Another reason why people are willing to pay so much for housing in Santa Barbara, at least when purchasing real estate, is the security of their investment. Santa Barbara has shown incredible average appreciation rates over the last several decades. And, when times are bad, the Santa Barbara market has shown a higher level of market resilience and less volatility than almost any other market in the U.S. For example, in 89-96 when real estate depreciated in California an average of 25%, Santa Barbara real estate only softened 13.5% over that entire period.
Web Reference: http://www.TheZiaGroup.com
1 vote Thank Flag Link Wed Sep 26, 2007
I love Santa Barbara with its charming downtown. While we have some lovely large homes in Manhattan Beach along the beach and on the Palos Verdes Peninsula with stunning views it is hard to compete with Santa Barbara. Many of the homes in Montecito are one of a kind on huge lots that are impossible to find in the Los Angeles area. The only drawback is the commute if you have to go into Los Angeles.
1 vote Thank Flag Link Sun May 20, 2007
Kaye Thomas, Real Estate Pro in 90266
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The simple answer is lifestyle. That really is all it is. Santa Barbara is a little enclave here on the coastline that offers incredible weather, restaurants, architecture, culture, outdoor activity and a safe healthy place to raise children.

As far as the cost to live, I imagine you are speaking about the cost to buy a home. This is high for sure and simply is a matter of economics (supply v. demand). Many people want to live here and we are restricted by size....SB is pretty much built out with no room to sprawl (which is also another great factor in why people choose to live here). Since there is no room to sprawl, the prices are driven up with more demand than supply.

The most recent stats I have heard are that upwards of 70% of the population rents. This simply states that people choose to live here regardless of the cost to purchase a home. Outside of the home purchase, I think most people feel that everything else is similar in costs to other towns (maybe a little higher but not too much).

Please let me know if you have any other questions. I would be happy to be of help. You can contact me directly at 805-689-6877 or my website at http://www.KevinSchmidtchen.com
0 votes Thank Flag Link Fri Oct 26, 2007
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