Coastal California has seen renewed interest as buyers continue to expand from urban centers of Silicon Valley, San Francisco, and Los Angeles.
Four Golden State beach spots entered the top 10 in the luxury segment of the second emerging housing market index Wall Street Journal / realtor.com, released Tuesday.
They include Santa Maria and Santa Barbara, California, in the first place; San Luis Obispo, Paso Robles and Arroyo Grande, Calif., At # 5; and Oxnard, Thousand Oaks and Ventura, Calif., in ninth place, according to the data. Salinas, whose largest metropolitan area includes the very affluent Monterey region, was also in the top 10, ranking 8th on the index.
These areas, all north of Los Angeles, provide affluent families with space to continue working and studying from home without having to tear themselves away from California entirely.
“In general, there is a trend towards areas with less density”, Danielle Hale, chief economist for realtor.com, Mansion Global said. “Buyers are looking for less busy places where they can stretch out and have privacy.”
The index, based on June housing data, uses a list of indicators assess the prosperity of emerging housing markets. These include the growth of housing supply and demand; median listing prices; unemployment; wages; a measure of the cost of living; small enterprises; amenities and the proportion of residents born abroad who contribute to the vitality and diversity of the territory. In its second edition, local property taxes were also considered.
|RANK Q2||Rank Q1||cash||Subway station|
|1||20||19||santa maria-santa barbara, ca|
|2||2||0||alene heart, id|
|3||7||4||hilton head island-bluffton-beaufort, sc|
|4||13||9||crestview-fort walton beach-destin, fl|
|5||35||30||san luis obispo-paso robles-arroyo grande, ca|
|6||8||2||barn town, ma|
|9||19||ten||oxnard-mille oaks-ventura, ca|
|ten||6||-4||north of port-sarasota-bradenton, florida|
|11||ten||-1||nashville-davidson – murfreesboro – franklin, tn|
|12||23||11||san jose-sunnyvale-santa clara, ca|
|13||5||-8||austin-round rock, tx|
|14||21||7||charleston-north charleston, sc|
|15||22||7||Sacramento – Roseville – Arden-Arcade, CA|
|16||25||9||Wilmington, North Carolina|
|17||4||-13||naples-immokalee-marco island, fl|
|18||24||6||tampa-st. petersburg-clearwater, fl|
|19||27||8||santa rosa, ca|
|20||29||9||las vegas-henderson-paradise, nv|
Wall Street Journal / realtor.com Emerging Housing Markets Index
The 60 metropolitan areas examined in the luxury segment of the Emerging Housing Markets Index are ranked based on housing data for the top 1% of each market and the weighted sum of those metrics to determine which have the markets. hottest high end.
California has a mix of densities, from big cities to small towns, Hale continued, which gives wealthy buyers options when looking for a new home. This bodes well for the markets of what have traditionally been second home destinations, such as Santa Barbara’s hugely affluent Montecito and Malibu, but also attractive coastal locations under the radar like Oxnard.
âThe main consumer rankings markets tend not to be vacation spots,â Hale said of the non-luxury overall ranking, of which Billings, MT was No.1 this time. “This is not true for luxury.”
The influx from denser areas like Los Angeles is certainly evident in Santa Barbara, according to Billy Rose, co-founder and vice president of The Agency.
âThere are bidding wars on almost every property,â he said. âHomes are resold soon after purchase for high premiums, and agents are selling pocket ads more than ever. “
The Covid-19 pandemic has placed more emphasis on the âhome,â Rose noted, which has benefited the Santa Barbara market.
âPeople look for more in a home, especially luxury buyers,â he explained. âSanta Barbara delivers so much. “
The city of Santa Barbara not only has properties with plenty of space for work, school, recreation, and exercise, but it also offers upscale shopping and dining, outdoor activities such as hiking and biking and, of course, beaches.
âThe weather is wonderful and the atmosphere is relaxed,â said Mr. Rose.
In Santa Barbara County, areas like Montecito have been “very popular,” in part because there are larger plots of land being offered there, he added. Old-time architecture and Spanish-style houses were also in demand.
âPeople are looking for beautiful homes wherever they are,â said Rose.
This extends to other top cities such as San Luis Obispo, on California’s central coast, and the Oxnard, Thousand Oaks and Ventura area, about 40 minutes north of Los Angeles. The latter is expected to be one of realtor.com’s main housing markets in 2021, according to a December report from the real estate portal.
âThe area’s beach homes are significantly more affordable than those in Malibu or Santa Monica, making them a popular alternative for buyers hoping to get more for their money,â Ms. Hale said in the report.
Some cities in the luxury segment of the emerging housing index have seen big jumps from the first edition, released in April.
For example, Provo-Orem, in Utah, took first place in the first luxury index, but fell to 42nd place on the list released Tuesday. Reno, Nevada’s rankings fell four places to No.7 in the most recent index, while Coeur d’Alene, Idaho, has retained its n Â° 2 position in the luxury segment.
Other emerging luxury markets include South Carolina’s Hilton Head, Bluffton and Beaufort, a region that landed at No.3, and Cape Cod, Massachusetts, which took sixth. There are two Top 10 Florida destinations, and neither were the typical luxury pillars of Miami or Palm Beach. Crestview, Fort Walton Beach and Destin in the northwestern part of the state came in 4th, and North Port, Sarasota and Bradenton on the Gulf Coast came in 10th.
âLuxury vacation areas continue to dominate the top of this list,â Ms. Hale said. âThe places where people live and work, like New York City, Philadelphia, Miami and San Francisco, are still downstairs. It will be interesting to see how that plays out the rest of the year.
(Mansion Global is owned by Dow Jones. Dow Jones and realtor.com are both owned by News Corp. The Wall Street Journal is also owned by Dow Jones.)