Santa Cruz
The City of Santa Cruz produced 46 single-family sales in June, the deepest volume in the county.
The Numbers
Santa Cruz market snapshot
| Measure | June 2026 |
|---|---|
| Median sale price — single-family homes | $1,747,500 |
| Average days on market | 33 |
| Homes sold | 46 |
Price, days on market and sales count: Santa Cruz County Association of REALTORS® / MLSListings, Inc., June 2026, single-family homes. Days on market is published as an average, not a median, and measures list date to contract rather than to close. Housing-stock figures where shown are US Census ACS 2020–2024 five-year estimates. Figures change monthly — ask me for the current month before making a decision on them.
Housing stock
Housing runs from Victorian-era stock on the Westside and in Seabright to postwar development in Live Oak and the upper Westside. Quarterly figures split the city into distinct submarkets — West Santa Cruz at $1,760,000, East Santa Cruz at $1,550,000 and Live Oak at $1,605,000 for the second quarter — so a citywide median obscures real differences between neighbourhoods.
Getting around
Highway 1 runs along the coast and Highway 17 climbs over the mountains to the Santa Clara Valley, a commute that is heavily weather- and incident-dependent. The University of California campus sits above the city to the northwest and shapes the rental market.
What Prop 19 means for a longtime Santa Cruz owner
Santa Cruz is the most common destination for over-the-hill downsizers from Santa Clara County. A Cupertino or Los Gatos owner carrying a base year value in the low hundreds of thousands can buy here at $1.75M and keep that base under Prop 19 — the annual difference against a fresh assessment is frequently over $15,000.
If you are 55 or older you can carry your existing property-tax base to a replacement home anywhere in California, up to three times. Read the Prop 19 guide, or run your net proceeds to see what a sale actually leaves you.
Measure C: the city’s new housing taxes
Santa Cruz city voters passed Measure C, the Workforce Housing Affordability Act of 2025, in November 2025. Both halves took effect July 1, 2026. It applies only inside city limits — not to unincorporated county, and not to Capitola, Scotts Valley or Watsonville.
The transfer tax, if you sell above $1.8M
This is on top of the county’s $1.10 per $1,000, and unlike San Jose’s Measure E it is marginal — only the portion of the price above each threshold is taxed at that tier’s rate. Nothing below $1.8M is taxed at all.
| Portion of the sale price | Rate |
|---|---|
| Under $1,800,000 | No new tax |
| $1,800,000 – $2,500,000 | 0.5% |
| $2,500,000 – $3,500,000 | 1.0% |
| $3,500,000 – $4,500,000 | 1.5% |
| Over $4,500,000 | 2.0% |
| Maximum per transaction | $200,000 |
The city’s own worked example: a $2,600,000 sale owes nothing on the first $1.8M, $3,500 on the $1.8M–$2.5M band, and $1,000 on the last $100,000 — $4,500 total. Note the tax base is the sale price including any debt remaining on the property, and it is collected through escrow at the deed transfer. The net proceeds calculator has this built in.
Selling an inherited home here? Read this twice. Two different transfers, two different answers. The transfer from the person who died — or out of their trust — to the heirs or beneficiaries is exempt under Santa Cruz Municipal Code 3.34.258, which adopts Rev. & Tax. Code §11930 for inter vivos gifts and transfers by reason of death. But the sale from the estate, trust, or heir to a buyer is fully taxable, exactly like any other sale. SCMC 3.34.160(b) applies the tax “regardless of the method by which the transfer is accomplished or the relationship of the parties.” Inheriting the house does not exempt selling it.
Other exemptions written into the ordinance include marital property division on dissolution (3.34.252), deeds in lieu of foreclosure (3.34.240), restricted affordable units under a 30-year covenant (3.34.250), continuing-partnership and proportional-interest transfers (3.34.230), bankruptcy and reorganization conveyances (3.34.210), and various public-agency transfers. The city’s public FAQ lists only some of these; the ordinance itself has eleven. Ask your title officer to confirm which applies to your transaction.
The $96 parcel tax, whether you sell or not
Separate from the transfer tax, every parcel in the city now carries a flat $96 a year. It began in the 2026–27 fiscal year, is fixed for 20 years, and is collected with your regular county property tax bill. Owners of residential rental property are prohibited from passing it through to tenants (SCMC 3.34.060(b)). This is an annual holding cost, not a closing cost — it does not appear on your settlement statement.
If you’re a low-income senior, you may not have to pay it. The city exempts qualifying low-income homeowners and low-income homeowners 65 and older, along with deed-restricted affordable housing and tax-exempt organizations. It has to be your primary residence and you have to apply with documentation — it is not automatic.
| Household size | 1 person | 2 person | 3 person | 4 person |
|---|---|---|---|---|
| Santa Cruz County area median income | $92,950 | $106,250 | $119,500 | $132,800 |
| Low-income limit (60% of AMI) | $55,770 | $63,750 | $71,700 | $79,680 |
| Senior 65+ limit (80% of AMI) | $74,360 | $85,000 | $95,600 | $106,240 |
The 2026 application window has closed — documents were due July 24, 2026. If you would have qualified, watch for the next window and get your paperwork together early. The city asks for proof the home is your primary residence, proof of ownership (your property tax bill), an income document such as a CalFresh acceptance letter, PG&E CARE enrollment, W-2 or tax return, and for the senior exemption proof of age. Applications go to City of Santa Cruz: Workforce Affordability Act Exemption, 1200 Pacific Avenue, Suite 290, Santa Cruz, CA 95060 — mail only, or call 831-420-5068 for a drop-off appointment. Questions: 831-420-5068 or askfinance@santacruzca.gov. Source: City of Santa Cruz Measure C page, read August 2026. One caveat worth knowing: the Local Taxpayer Protection Act has qualified for the November 2026 ballot, and the city has said it is monitoring what that measure could mean for Measure C.
Local conditions that affect a sale
The San Lorenzo River runs through downtown, and the majority of the downtown area sits within its floodplain, as does the Harvey West area. Coastal flooding at the river mouth worsens when storm surge coincides with high tide. Around 110 properties inside city limits are on septic rather than sewer, which triggers the county's point-of-sale inspection rules.
Selling here
Confirm sewer versus septic early. If the property is on an on-site system, Santa Cruz County requires a point-of-sale inspection and pumping report before transfer.
Straight about the numbers: the figures above are transcribed from the sources named, for the month named. They describe a market, not your house. Condition, location within the community, lot and timing move an individual sale far more than a median does. Nothing here is legal or tax advice — your attorney and CPA have the final word.
What’s your Santa Cruz home worth?
A median tells you about the market. It doesn’t tell you about your house. Send me the address and I’ll put together a real analysis by hand — genuinely comparable sales near you, condition adjustments, and an honest range. If it’s not a good moment to sell, I’ll say so.
Thinking about selling in Santa Cruz?
A What's-Next Consultation covers your realistic value, your net after taxes, your Prop 19 options and the sequence that protects them. A conversation, not a pitch.
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