Is It Better to Rent or Buy in Santa Monica?

A Local Expert Guide for 2025

By Jocelyn Kelley & Hays Westbrook | Kelley | Westbrook Group

PILLAR PAGE: Santa Monica Rent vs. Buy Guide

Introduction

Santa Monica remains one of the most competitive and desirable real estate markets in the country. With high home prices, strong rental demand, and lifestyle-driven buyers, many people ask the same question:

Is it better to rent or buy in Santa Monica?

The answer depends on timing, lifestyle goals, financial strategy, and long-term plans. As local real estate advisors deeply rooted in Santa Monica and the Westside, we break down the real numbers, market trends, and lifestyle considerations to help you make a confident decision.

Santa Monica Market Snapshot

• Limited housing inventory

• Strong buyer demand from local and relocating professionals

• High rental occupancy rates

• Consistent long-term appreciation

• Strong school districts and walkable neighborhoods

Renting in Santa Monica: Pros & Cons

Pros of Renting

• Flexibility for career or lifestyle changes

• Lower upfront costs

• No responsibility for maintenance or repairs

• Easier entry into premium neighborhoods

Cons of Renting

• Rising rental prices year over year

• No equity or long-term wealth creation

• Less control over your living space

• Vulnerability to lease changes or landlord decisions

Best for:
Short-term residents, professionals testing neighborhoods, or buyers waiting for optimal purchasing conditions.

Buying in Santa Monica: Pros & Cons

Pros of Buying

• Long-term appreciation in a supply-constrained market

• Fixed housing costs with a mortgage

• Ability to customize and renovate

• Wealth-building through equity

• Tax advantages for many homeowners

Cons of Buying

• Higher upfront costs

• Competitive bidding environments

• Less flexibility to move quickly

Best for:
Long-term residents, families, investors, and buyers prioritizing stability and wealth creation.

Santa Monica–Specific Rent vs. Buy Comparison

Local Insight:
In neighborhoods like North of Montana, Ocean Park, and Sunset Park, homeowners historically outperform renters financially after 5–7 years due to appreciation and equity growth.

Lifestyle Considerations Unique to Santa Monica

• Walkability to beaches, dining, and schools

• Commute-friendly for Westside professionals

• Community-focused neighborhoods

• High-quality public and private schools

• Strong resale demand

When Renting Makes Sense in Santa Monica

• You plan to stay less than 3 years

• You’re relocating and learning neighborhoods

• You prioritize flexibility over equity

• You’re waiting for a specific property type

When Buying Makes Sense in Santa Monica

• You plan to stay 5+ years

• You want predictable housing costs

• You value long-term appreciation

• You want to establish roots in the community

• You’re purchasing in a high-demand micro-neighborhood

Expert Perspective from the Kelley | Westbrook Group

Santa Monica real estate is not just about numbers—it’s about timing, lifestyle, and long-term vision. Many of our clients rent first, then strategically buy once the right opportunity appears.

The key is having a plan, not guessing.

Frequently Asked Questions

Is Santa Monica a good place to buy real estate?
Yes. Limited inventory, strong demand, and long-term appreciation make Santa Monica one of Southern California’s most resilient markets.

Is renting cheaper than buying in Santa Monica?
Short term, yes. Long term, buyers often outperform renters financially after several years.

How competitive is the Santa Monica housing market?
Very competitive, especially for well-priced homes in prime neighborhoods.

Call to Action

Thinking about renting or buying in Santa Monica?
Contact Jocelyn Kelley and Hays Westbrook for a personalized strategy based on your goals, timeline, and lifestyle.