Why Santa Monica Real Estate Continues to Outperform the Los Angeles Market

By Hays Westbrook & Jocelyn Kelley – Kelley | Westbrook Group

Santa Monica has long been one of the most desirable places to live in Los Angeles, but even in shifting market conditions, Santa Monica real estate continues to outperform surrounding markets. From consistent buyer demand to lifestyle-driven value, this coastal city remains a standout for both homeowners and investors.

As local real estate experts who live and work on the Westside, we see firsthand why buyers continue to prioritize Santa Monica—and why sellers benefit from its resilience.

1. A Coastal Lifestyle That Never Loses Demand

Santa Monica offers something few LA neighborhoods can replicate: walkability, ocean access, top-rated schools, and a true community feel.

Buyers are drawn to:

Walkable neighborhoods near Montana Avenue and Main Street
Proximity to the beach, Palisades Park, and the Strand
Dining, shopping, and wellness culture
Easy access to Brentwood, Venice, and Pacific Palisades

Lifestyle-driven demand is one of the biggest reasons Santa Monica home values remain strong even when the broader market slows.

2. Limited Inventory Protects Home Values

Unlike other parts of Los Angeles, Santa Monica is geographically constrained. With the ocean to the west and strict zoning regulations, new housing supply is limited.

This scarcity creates:

Strong competition for well-located homes
Fewer dramatic price swings
Better long-term appreciation

For sellers, this means pricing power. For buyers, it means owning in a market that historically holds value.

3. Strong Buyer Demographics

Santa Monica attracts a diverse and financially strong buyer pool:

Tech and entertainment professionals
Medical professionals working at UCLA and Providence
Families prioritizing Santa Monica–Malibu Unified School District
International and second-home buyers

This depth of demand makes Santa Monica one of the most liquid luxury submarkets in Los Angeles.

4. Santa Monica vs Other Westside Markets

Compared to nearby areas:

Venice offers creativity and energy but more volatility
Pacific Palisades delivers larger homes at higher entry points
Brentwood provides quiet luxury but less walkability

Santa Monica consistently sits at the intersection of lifestyle + stability + resale value, which is why many buyers choose it as their long-term home base.

5. What Today’s Buyers Are Looking for

In current Santa Monica home searches, buyers are prioritizing:

Natural light and indoor-outdoor flow
Updated kitchens and bathrooms
Private outdoor space (even modest patios)
Walkability over square footage

Homes that meet these criteria often sell faster and closer to asking price, even in a more selective market.

6. What This Means for Sellers

If you’re considering selling in Santa Monica, timing and strategy matter more than ever.

The most successful listings:

Are priced accurately from day one
Highlight lifestyle, not just specs
Leverage professional staging and targeted marketing
Reach both on-market and off-market buyers

This is where local expertise makes a measurable difference.

7. Is Santa Monica Still a Smart Investment?

From a long-term perspective, Santa Monica continues to be one of the safest real estate investments on the Westside of Los Angeles.

Key reasons:

Enduring global appeal
Strong rental demand
Limited supply
High quality of life

For buyers who plan to stay or hold property over time, Santa Monica remains a compelling choice.

Work With a Local Santa Monica Real Estate Expert

Whether you’re buying, selling, or simply exploring your options, working with agents who understand street-by-street values, micro-neighborhood trends, and buyer psychology is essential.

Hays Westbrook and Jocelyn Kelley of the Kelley | Westbrook Group specialize in Santa Monica, Pacific Palisades, Brentwood, and the greater Westside. We provide strategic guidance, honest market insight, and a highly personalized approach.

📩 Contact us to discuss your Santa Monica real estate goals.