‘Wall Street Journal’ Lists Santa Maria-Santa Barbara as Number 1 Emerging Housing Market

The Santa Maria-Santa Barbara area secured the number one spot on the Wall Street Journal’s Emerging Housing Markets list for this quarter. Normally, these rankings fall in line with reasonable home prices and overall affordability — not common descriptors of Santa Barbara and a surprising boost for Santa Maria. Boasting a median home price of over $1 million, more than any other locale in the top 20, Santa Maria-Santa Barbara compensated by performing well on other criteria, such as wages, unemployment, and amenities, that propelled them to first. 

This quarter’s list is unique in that it exemplifies two juxtaposed types of housing markets. The first is one in which prices are low enough for more buyers to want to enter the market. The other, spearheaded by Santa Barbara and Montecito, is one where prices are so high that anyone looking to buy in that area doesn’t have the same affordability concerns as the rest of the general population. 

The only metro in the Western United States to make the cut, Santa Barbara is starkly different from the other markets — most of them areas in the Midwest with substantially lower home prices and costs of living. This area has brought about a high demand from international homebuyers, who make up 3.3 percent of Santa Maria-Santa Barbara’s listing viewership, the report indicated. In comparison, the national average was 1.4 percent.

Further, Santa Barbara has seen a huge influx in domestic home buyers following the pandemic, as people were able to adopt a remote working environment permanently and move wherever their hearts (and wallets) desired. This increase in real-estate demand, matched by a somewhat stagnant housing supply, is one of the main reasons why Santa Barbara soared to the top from a 14th place finish in the fall. The locale shares the list with returners Jefferson City, Missouri; Topeka, Kansas; and Columbus, Ohio; new adds Portland, Maine; and Reading, Pennsylvania, for first appearances on the Winter 2024 Wall Street Journal/Realtor.com Emerging Housing Markets Index.

Santa Maria’s comparatively low median home price of $665,000 implies a much different perspective on Central Coast living. Realtors who sell Santa Maria properties emphasize that its affordability, improving amenities, and proximity to Santa Barbara and San Luis Obispo have made it a more and more popular option as prices in surrounding areas show no sign of slowing down. Santa Maria balances out Santa Barbara in this way to produce a vast portfolio of properties — tying two contrasting markets together to secure first place.

For more information, see The Wall Street Journal’s full Emerging Housing Markets Index here.