With breathtaking cliffside views, clean beaches, and a beautiful Mediterranean climate, it’s easy to see why so many people have decided to make the move to Santa Barbara. But the city isn’t just a place of natural beauty; it also boasts a rich history and vibrant community that makes it truly special. Whether you’re looking for an idyllic place to retire or raise a family, there’s no doubt that Santa Barbara comes pretty close to paradise.

Santa Barbara at a glance

According to the most recent data, the Santa Barbara metropolitan area was home to roughly 450,000 people in 2020. The city itself had a population of around 92,000. This represents a significant increase from previous years, and experts expect the trend to continue in the coming years.

Santa Barbara is a much-loved city despite its small size; it covers a mere 21 square miles. The town has a lot to offer residents and visitors alike, from its stunning natural beauty to its rich history and culture.

Although Santa Barbara is largely known as a college town given the presence of the University of California, Santa Barbara, the city also appeals to retirees. This is evident in the median age of city residents, which is just under 40 years old. The city’s mild climate and array of activities and amenities make it an attractive place to settle down for people of all ages.

Living in paradise isn’t cheap

There’s no denying that Santa Barbara is an expensive city to live in. In fact, it is often cited as one of the most costly places to reside in Central California. Payscale has reported that the cost of living in this city is a whopping 100% higher than the average price tag nationwide. For residents, this often means making some tough financial choices and being very mindful about how they spend their money.

Santa Barbara ranks highly on a number of lists. Most recently, it came in at number 4 out of 150 for the Most Expensive Places to Live, as per the US News and World Report. It is also ranked highly for Quality of Life, coming in at number 7, which is no surprise given its stunning location and amenities.

Meanwhile, an average salary in Santa Barbara is significantly lower than the state average as it is only about $77,000 a year. In comparison, the average salary in California is $81,000 a year, meaning that residents of Santa Barbara make approximately $4,000 less per year.

Moreover, Best Places has indicated that Santa Barbara’s income tax rate is 9.3%, which is over double the average of 4.6% nationally. A small number like this can have a big impact on residents’ net income, effectively reducing their take-home pay. For example, someone earning $50,000 per year would see their net income reduced by nearly $5,000 due to Santa Barbara’s higher taxes. This puts a significant strain on residents who are already struggling to make ends meet.

Housing costs reflect the high cost of living

The cost of living in the city of Santa Barbara is significantly higher than in other parts of the country, due largely to the high cost of housing. The median price for a home in Santa Barbara is $1.3 million. On the other hand, the average rent is around $2,200 per month (for an apartment with an average size of 650 sq ft). This makes it extremely difficult for residents to find affordable housing options, and many are forced to spend a large portion of their income on rent or mortgage payments.

If you’re planning on moving to Santa Barbara, you should be aware that most of the city’s residents are renters. This means that there will be a lot of competition for rental properties, and prices may be higher than average. However, Santa Barbara is still an incredibly desirable place to live, so it’s worth doing your research and being prepared for the rental market.

One of the key reasons that square footage costs are high in Santa Barbara is due to the stringent development restrictions that are in place. Additionally, it’s worth highlighting that this city is relatively small, but there is a high demand for property here.

There is a common belief that only a small minority of people who reside in Santa Barbara would be able to afford to buy a property here without any assistance. A large portion of the wealth in this area is inherited, and this includes real estate. Consequently, this makes it difficult for individuals who are not part of wealthy families to purchase homes in Santa Barbara.

Highest priced neighborhoods in Santa Barbara

Montecito is the most expensive neighborhood in Santa Barbara, with Hope Ranch coming in a close second. These two neighborhoods are significantly more expensive than the rest of the city, due to their prime location and luxurious amenities. If you’re looking for a place to live in Santa Barbara that’s both high-end and expensive, these are the two neighborhoods you should aim for.

Montecito

Montecito is a wealthy community known for having some of the most expensive real estate in the United States, with the average priced home selling for between $2 and $4 million. The community is situated along the coast, and its proximity to the beach makes it a popular destination for tourists and celebrities alike.

The real estate market in Montecito is quite unique, in a sense that there are very few areas in the country where you can find homes priced between $12 and $20 million. This is definitely a luxurious price point, and most of these types of homes are usually located near major cities. It’s fascinating that such a small community like Montecito has such a prestigious real estate market!

Hope Ranch

Hope Ranch is a highly exclusive area located just behind Montecito in Santa Barbara. The average home price in Hope Ranch falls between $1.7 million and $3 million, making it one of the most expensive places to live in Santa Barbara County.

Hope Ranch is home to some of the most expensive real estate in the area, with values ranging from anywhere between $7 million to $20 million. Hope Ranch is a desirable community for wealthy individuals and families who are looking for luxurious lifestyles and homes. The expansive lots and estates within Hope Ranch offer privacy and seclusion, while still being close to the amenities and attractions of Santa Barbara.

The Riviera

If you’re looking for a more upscale neighborhood in Santa Barbara, The Riviera is probably your best bet. On average, homes in this area sell for between $1.4 and $2.8 million. The Riviera is a highly sought-after neighborhood because of its stunning ocean views and close proximity to exclusive restaurants and shops.

Most of the homes on the Riviera have stunning views of either the ocean or one of the many islands off Santa Barbara’s coast. It’s no wonder that people are willing to pay a premium to live on this hill!

The Upper East

The Upper East Side is one of the oldest established neighborhoods in the city. It’s located just off State Street and is home to many large, beautiful homes with big yards. The average home size on the Upper East Side is larger than most other neighborhoods in the city.

In Santa Barbara, the average home on the Upper East side usually sells for around $1.4 million to $2.8 million. This can also depend on various factors, such as the size and condition of the property. However, in general, properties in this area tend to be quite expensive.

Campanil Hill and Braemar

Campanil Hill and Braemar is the final, higher-end neighborhood in Santa Barbara. As a small enclave situated outside of Hope Ranch along the ocean, this area is renowned for its breathtaking coastal views, exclusive amenities, and luxurious homes. Residents of Campanil Hill and Braemar enjoy a secluded and privileged lifestyle within one of California’s most beautiful settings.

The average price for homes in Campanil Hill and Braemar that have breathtaking ocean views normally ranges from $1.3 million to $3 million, with the highest end expected to be somewhere between $4 million to $7 million. These homes tend to sell quickly because of their desirability. If you are looking for a home in this area, it is important to be prepared to act fast when you find one that meets your needs.

With that said, Santa Barbara is a relatively wealthy area. It’s not as affluent as some other parts of California, but it’s still well-to-do. The cost of living is high, but so is the quality of life. There are plenty of things to do and see, and the weather is almost always perfect. If you can afford it, Santa Barbara is definitely worth considering as a place to live.