California · Los Angeles-Long Beach-Anaheim, CA metro area

Buying a home in Santa Monica, California

In Santa Monica, the median value of owner-occupied homes is $1,755,500, Los Angeles County's effective property tax rate is 0.68%, and a purchase mortgage carried a median $11,266 in total loan costs in 2025.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Santa Monica home costs, fact by fact

About Santa Monica

In Santa Monica, 27.9% of homes are owner-occupied. Owners estimate the median value at $1,755,500, which is an estimate rather than a sale price, and median gross rent is $2,402 a month. Los Angeles County's effective property tax rate (median tax as a share of home value) is 0.68%, with a HUD two-bedroom Fair Market Rent of $2,964.

Reading the Santa Monica figures

Santa Monica's owner-estimated median of $1,755,500 is far above the California median of $770,700. Mountain View reports $1,927,000, which is higher. Sunnyvale reads $1,801,800, San Mateo shows $1,618,700, and Santa Clara stands at $1,582,600. Santa Barbara reads $1,570,800, San Ramon reaches $1,509,500, and Los Angeles shows only $921,200, a figure well under every other city named in this paragraph. Fremont reads $1,403,800 while Carlsbad shows $1,257,000, both lower than Santa Monica, which keeps the city among the highest estimates listed here without making it the highest. These are owners' estimates, not sale prices.

The tax picture is moderate by comparison. Los Angeles County's effective rate is 0.68%, so annual property tax runs to $5,675 relative to homes valued at $834,200 across the county. Because Santa Monica's own value is well above that county median, a buyer should not assume the county bill describes a purchase here, and should ask about the assessment on the particular property.

The city is a renter market. Owners occupy only 27.9% of homes, the lowest share among the cities named here, below Los Angeles's 36%, Santa Barbara's 39.9% and Santa Clara's 40.8%. Typical rent is $2,402 a month, which is lower than rent in Mountain View ($3,062), Sunnyvale ($3,039) or San Mateo ($3,077), and above rent in Los Angeles, which reads $1,933, or Berkeley, which reads $2,133. HUD's Fair Market Rent benchmark for the Los Angeles-Long Beach-Glendale area is $2,964, a federal reference figure and not a market median, and it sits above the city's median rent.

Financing is the largest cost beyond the price. Among 32,309 Los Angeles County loans in the 2025 HMDA data, the median origination outlay is $11,266. The interquartile range runs from $7,619 to $18,640, so buyers in the same county can face very different loan costs. Santa Monica has 90,729 residents, a population above Mountain View's 87,316 or Santa Barbara's 87,291, though below San Mateo's 103,006 and Berkeley's 121,749. It lies in the Los Angeles-Long Beach-Anaheim metro area, which ranks 2nd nationally with 12,927,614 people, one of the 104 covered California cities.

A last cross-reading ties value to rent for the cities around Santa Monica. Mountain View pairs a $1,927,000 estimate with $3,062 in rent, Sunnyvale pairs $1,801,800 with $3,039, and San Mateo pairs $1,618,700 with $3,077. Berkeley reads $1,413,900 with rent of $2,133, and San Francisco $1,394,500 with $2,476. Santa Barbara, at $1,570,800, has rent of $2,413, close to Santa Monica's own. Against that set Santa Monica shows a high value paired with a rent that is lower than the Silicon Valley cities listed. The pairing does not say which place is the better purchase; it only places Santa Monica's figures among cities with high owner estimates.

Calculate for California

If you buy

California state transfer tax

California has no state transfer tax; counties and cities may charge one.

Price$770,700
State transfer taxnot computed
Who paysSet by the purchase contract

Default price: the California median value of owner-occupied homes, $770,700 (Census ACS 2025). Not computed: No state tax. The tax is set by county and city, so it cannot be computed from the state alone. Who pays: Neither the state statute nor the City of Los Angeles FAQ assigns the tax; the purchase contract and escrow instructions decide. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. California transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: California state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Santa Monica

How much is property tax in Santa Monica?

Homeowners in Los Angeles County pay a median $5,675 a year in property tax, 0.68% of the county median home value of $834,200 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Santa Monica?

Home-purchase mortgages in Los Angeles County carried median total loan costs of $11,266 in 2025; half of the 32,309 loans fell between $7,619 and $18,640 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Santa Monica?

California has no state transfer tax. Counties may charge $0.55 per $500 of value under the Documentary Transfer Tax Act, and cities such as Los Angeles add their own, with Measure ULA adding 4% or 5.5% on very high-priced sales.

Is it cheaper to rent or buy in Santa Monica?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Santa Monica ($1,755,500) equals 60.9 years of the median gross rent ($2,402 a month), both from Census ACS 2020-2024.

What natural hazards affect home insurance in Santa Monica?

Across California, the main hazards for home insurance are earthquake, wildfire, flood and landslide, and the insurer of last resort is California FAIR Plan. A standard California homeowners policy does not cover earthquake damage; insurers must offer earthquake coverage (Insurance Code 10081), and the FAIR Plan sells limited fire coverage up to $3 million for residential policyholders.

Run your own numbers: rent vs buy calculator · closing costs calculator.

California rules that apply in Santa Monica

Other large cities in California

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Sources

California · All states · Federal guides