The real estate market in Santa Cruz is made up of a diverse range of properties, in terms of architectural style, category, and construction date. This, along with its incredible location and amenities, make it a sought-after place to settle down. That being said, being a competitive market and rising property prices have often made the homebuying process in Santa Cruz County more difficult, especially over the past few years!
So what is in store for 2026 for buyers and sellers? While it is impossible to predict (with 100% accuracy) what the real estate market will look like in the near future, predictions can be made based on trends and the data available. Santa Cruz—and Santa Cruz County—is a market that's not easily definable, and it sees small ebbs and flows on a monthly basis. These metrics are in regards to available inventory, sale price, and days on the market.
But to answer this question simply: the year 2026 will (likely) see home prices continue to rise as Santa Cruz County remains a desirable area for many.
The Real Estate Market In Santa Cruz
Santa Cruz comprises single-family homes and multi-family properties, with a high rate of homeownership. Additionally, because of the university campus, the city has a significant student population.
The average sale price of a single-family home in Santa Cruz has risen from around $1,276,000 in 2020 to around $1,701,000 in 2024. Inventory and number of sold properties have also decreased. In October 2025, the average sales price was around $1,494,000.
The Real Estate Market In Santa Cruz Aptos
Aptos is a gorgeous community in Santa Cruz County, east of Santa Cruz. Made up of a number of villages, the Aptos real estate market showcases both oceanfront properties and semi-rural hillside properties.
The average sale price of a single-family home in Aptos has risen from around $1,388,000 in 2020 to around $1,800,000 in 2024. Just like Santa Cruz, inventory and number of sold properties have decreased over time. In October 2025, the average sales price was around $1,695,000.
The Real Estate Market In Capitola
One of the most recognizable communities in the area, Capitola is known for its colorful beachfront real estate and its outdoor recreation. It sees a significant tourist population annually from those also visiting Santa Cruz.
The average sale price of a single-family home in Capitola has risen from around $1,239,000 in 2020 to around $2,127,000 in 2024. Inventory, however, is low in this area by design and these metrics may now be entirely accurate due to this. In October 2025, the average sales price was around $1,504,000.
The Real Estate Market In Santa Cruz Watsonville/Corralitos
Considered to be a laid-back and more rural alternative to Santa Cruz, Watsonville and nearby Corralitos appeal to a wide demographic, from families to seniors. Watsonville is typically considered to be a more affordable option, though both communities have seen less significant increases in home price than the areas closer to Santa Cruz.
The average sale price of a single-family home in Watsonville has risen from around $783,000 in 2020 to $1,010,000 in 2024. Similarly, the average sale price of a single-family home in Corralitos has risen from around $1,588,000 in 2020 to $1,814,000 in 2024. In October 2025, the average sales price was $1,027,000 and $1,270,000 for Watsonville and Capitola, respecitvely.
Santa Cruz: What’s Next?
As single-family home prices (as well as other property prices) continue to rise—which will likely continue into the year 2026—some prospective homebuyers are choosing other, surrounding communities when searching for their next home. Or, choosing instead to downsize.
While this is an option, the city of Santa Cruz itself (as well as Santa Cruz County) is also overseeing some new developments, particularly focused on low-rise, multi-family homes. These include, but are not limited to, the following:
- Park Haven Plaza (2838 Park Avenue, Soquel). Currently under construction, however the project has been delayed. The building will consist of 36 rental units.
- RiverRow Apartments (414 Front Street). Currently under construction. This building is mixed use, and is planned to have 175 rental units, with 20 of these designated as affordable housing.
- 41st and Soquel (2755 41st Avenue, Soquel). Currently in development, this complex is designed for 256 rental units.
- 530 Front Street. Currently in development. Another apartment complex, it is planned to be made up of 276 rental units with designated units for low-income residents.
All data has been taken from MLSListings, Inc. and from the Santa Cruz County Association of REALTORS®.
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