According to recently released data by the county assessor, Santa Monica now boasts the third-highest property values in Los Angeles County. Soaring nearly 36% over the course of five years, the combined assessed value of the city’s properties now total nearly $39.5 billion. They are third only to Long Beach and Los Angeles.
Although their rapid growth is a byproduct of the booming California real estate market, Santa Monica has also been bolstered by it’s proximity to the coast, top schools, and public services. Santa Monica has set itself apart from other cities, resulting in the skyrocketing property values.
Realtors have warned that while this ensures that Santa Monica remains one of the top spots to live, the rising property values may make it more and more unaffordable for citizens. While the already inflated property values have put some potential buyers at a disadvantage, the property tax revenue has allowed the city of Santa Monica to undertake a number of valuable projects. Currently, single-family homes make up the majority of the city’s total assessed property value while commercial property only comprises about 37%. Even though multi-family homes only take up 18%, their value has steadily increased, and make them one of the best investments in the real estate market. As more and more people are looking to live in Santa Monica, the small supply and high demand will result in multi-family homes becoming one of the most valuable forms of Property.
Realtors do urge buyers to remember that assessed values of existing properties will only rise when they are sold. As a result, Santa Monica has experienced these rises due to its booming real estate market. If every house in Beverly Hills were to sell, then they would boast the highest growth in assessed values. In regards to cities around Santa Monica, the assessed value of Beverly Hills property was $36.6 billion, Malibu grew to $16.9 billion, West Hollywood grew to $12.2 billion, and Culver City jumped to $11 billion.
With Santa Monica exhibiting consistent amounts of growth, it appears as if it’s real estate market is set up for a longterm, sustainable rise in property values.