Santa Barbara City Bucks South Coast Trend as Median Home Prices Dip in Fourth Quarter

Housing affordability continues to be a challenge in the 2025 fourth quarter for South Coast residents, reflecting a changing real estate landscape across the region, according to the latest Santa Barbara South Coast Chamber of Commerce data.

There has been a notable shift in the real estate market, with home prices rising in several South Coast cities, even as Santa Barbara City saw a decline in its median single-family home selling value, according to the data.

In contrast, Carpinteria, Goleta, and the broader South Coast region recorded rising median home selling values, reflecting continued demand and limited housing supply outside Santa Barbara City.

The rental market showed a mixed outlook, with median apartment rent in the South Coast rising to $2,853 from last year’s $2,775, the data showed. The apartment vacancy rate increased slightly to 2.8%, up from 2.7% a year earlier.

The median home selling value in Santa Barbara City was approximately $2.05 million, down from $2.15 million a year earlier, according to the data. Single-family home sales year-to-date remained unchanged at 31.

The office vacancy rate in Santa Barbara City declined to 9% from 11% last year, the data showed. Industrial vacancy increased to 2% from 1.1% a year earlier, while retail vacancy edged up to 3.8% from 3%.

Workforce and Unemployment Rates

Labor market data reflected relative stability across the region, with unemployment rates in Carpinteria, Goleta, Santa Barbara, and the South Coast each recorded at 3.8%, unchanged from the previous year, according to the data.

The current labor force in Santa Barbara County stood at 228,600 compared to last year’s 223,600. The current unemployment rate across the county was 4.5%. 

Santa Barbara was the only city to record an increase in median household income, rising to approximately $89,644 from $85,334 a year earlier, according to the dashboard. Median household income declined in Goleta and Carpinteria.

Development and Commercial Activity

Building permit data reflected uneven development activity across the region, with Carpinteria and Santa Barbara recording significantly higher residential permits than Goleta. 

Tourism

Tourism played a significant role in the region’s economy, with hotel occupancy rates up 10% to stand at 62% in the most recent week, the data showed. Hotel occupancy rates at Santa Barbara and Goleta stood at 60% and 74%, respectively. 

The average daily rate (ADR) in Santa Barbara and Goleta totaled $230 and $235 in the most recent week, improving by 4% and 1% respectively.

Revenue Per Available Room (RevPAR) in Santa Barbara and Goleta was $139 and $173, respectively, up 20% and 37%. 

However, Transient Occupancy Tax in Santa Barbara City fell 9.4% to total $3.27 million compared to the previous year’s $3.61 million. 

Sales Tax

Taxable retail sales showed slight softening in some areas during the quarter. Sales in Goleta increased 4.4% to $265 million, while taxable sales declined 4% in Santa Barbara City to $572.5 million and fell 3.6% in Carpinteria to $41 million.