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By Gavin Allen Business Development Intern, Santa Cruz Area Chamber According to the Santa Cruz County Association of Realtors, the current number of real estate listings in the County is growing, and the number of closed sales is decreasing. High interest rates have made borrowing more expensive, which has cooled down activity for typical buyers. But even though fewer properties are changing hands, the total assessed value of real estate in the county is still climbing, and that’s mainly due to a few major high-value projects that have made recent headlines. Lori Fleet, Chief Deputy Santa Cruz County Assessor, recently reported that the county's total 2025 Assessment roll was $64,734,929,156, representing a 5.95% increase over last year. One of the most significant factors contributing to the increase is the development and assessment valuation of the La Bahia Hotel property on Beach Street. After years of delays, the project finally broke ground in 2022 and has now been reassessed at about $50 million. The La Bahia expects to open to the public in September 2025, and when it does, it’ll be one of the most high-end hotel options between Half Moon Bay and Carmel. The development doesn’t just show confidence in local hospitality; it’s also a significant boost to the County’s overall property valuations. Another big sale that caught attention is the 84-unit Seaside Apartments complex, which sold for $45 million earlier this year, making it one of the most expensive multifamily housing deals in Santa Cruz history. That's over $535,000 per unit. The high price tag reflects just how competitive the local housing market has become, especially regarding affordable housing. These two projects, La Bahia and Seaside Apartments, have helped drive up the assessed value of property across the county. They also show that, even with high interest rates slowing down average buyers, investors, and developers still see a lot of long-term value in Santa Cruz. Big-ticket deals like these strongly signal that the region remains desirable for tourism and housing. So, while the real estate market here might be quieter than usual regarding volume, it’s still making noise regarding value. As we head into the fall, it’ll be interesting to see if interest rates shift and bring more buyers back into the mix or if we’ll continue to see fewer but higher-dollar property deals defining the market.
By Gavin Allen Business Development Intern, Santa Cruz Area Chamber
According to the Santa Cruz County Association of Realtors, the current number of real estate listings in the County is growing, and the number of closed sales is decreasing. High interest rates have made borrowing more expensive, which has cooled down activity for typical buyers. But even though fewer properties are changing hands, the total assessed value of real estate in the county is still climbing, and that’s mainly due to a few major high-value projects that have made recent headlines.
Lori Fleet, Chief Deputy Santa Cruz County Assessor, recently reported that the county's total 2025 Assessment roll was $64,734,929,156, representing a 5.95% increase over last year.
One of the most significant factors contributing to the increase is the development and assessment valuation of the La Bahia Hotel property on Beach Street. After years of delays, the project finally broke ground in 2022 and has now been reassessed at about $50 million. The La Bahia expects to open to the public in September 2025, and when it does, it’ll be one of the most high-end hotel options between Half Moon Bay and Carmel. The development doesn’t just show confidence in local hospitality; it’s also a significant boost to the County’s overall property valuations.
Another big sale that caught attention is the 84-unit Seaside Apartments complex, which sold for $45 million earlier this year, making it one of the most expensive multifamily housing deals in Santa Cruz history. That's over $535,000 per unit. The high price tag reflects just how competitive the local housing market has become, especially regarding affordable housing.
These two projects, La Bahia and Seaside Apartments, have helped drive up the assessed value of property across the county. They also show that, even with high interest rates slowing down average buyers, investors, and developers still see a lot of long-term value in Santa Cruz. Big-ticket deals like these strongly signal that the region remains desirable for tourism and housing. So, while the real estate market here might be quieter than usual regarding volume, it’s still making noise regarding value.
As we head into the fall, it’ll be interesting to see if interest rates shift and bring more buyers back into the mix or if we’ll continue to see fewer but higher-dollar property deals defining the market.