Santa Cruz is known as one of the most expensive places to live in the entire country. People need to make at least $60.35 per hour just to rent a two-bedroom apartment without spending more than 30 percent of their income on housing. That’s higher than almost anywhere else in America except San Francisco. For people who want to live near Santa Cruz but can’t afford those prices, there are some more affordable options nearby.
Is Moving to Santa Cruz Expensive?
Yes. Santa Cruz County ranks as the second least affordable place to live in the nation. The area sits right next to Silicon Valley, and that closeness means housing prices stay sky high. The beautiful beaches, redwood forests, and perfect weather make everyone want to live here, which drives prices even higher.
The cost of living in Santa Cruz is 86 percent higher than the national average and 24 percent higher than the already expensive California average. When demand is that high and there aren’t enough homes being built, prices just keep going up.
Watsonville – Best City For Community Activities
Watsonville stands out as the most affordable city near Santa Cruz. It sits about 23 miles southeast of Santa Cruz at the southern end of Santa Cruz County. The city has about 52,000 people and calls itself the Artichoke Capital of the World because of all the farming that happens there.
Homes in Watsonville start around $220,000, which is way less than Santa Cruz, where the median home price is over $700,000. The median home value in Watsonville is $671,037, and the median income is $77,137. Rent for a two-bedroom apartment averages around $2,109 per month compared to much higher prices in Santa Cruz.
The cost of living in Watsonville is only 1 percent higher than in California as a whole, but 33 percent lower than in nearby Santa Cruz.
People who live in Watsonville love the small-town feel and the agricultural heritage. The city is known for strawberries and hosts the annual Strawberry Festival and Santa Cruz County Fair. There are parks like Pinto Lake County Park and Mount Madonna County Park nearby. The downtown area along Main Street has local restaurants like El Frijolito Restaurant and Jalisco Restaurant.
The downside is that the job market in Watsonville is small. Many people commute about an hour to Santa Cruz or Monterey for work. Traffic can be bad during rush hour on Highway 1. Public transportation to nearby cities is limited because Watsonville sits near a tri-county border.
Ben Lomond – Best City For Surrounding Nature
Ben Lomond is a small mountain town about 12 miles north of Santa Cruz in the Santa Cruz Mountains. Only about 6,800 people live there. The town has one stoplight and a handful of restaurants, giving it a quiet, rural feel.
Homes in Ben Lomond typically sell for as low as $499,900, which is less than half what you’d pay in Santa Cruz proper. The area offers charming character homes with hardwood floors and detached garages. Many homes sit on larger lots with trees and mountain views.
The area gives you a nice balance between city life and nature, with several hiking trails through the redwoods.
The town is quiet and safe, perfect for families who want to live among nature. You’re still close enough to Santa Cruz to commute for work or enjoy the beach on weekends. The biggest challenge is that amenities are limited in town, so you’ll need to drive to Santa Cruz or Scotts Valley for shopping and services.
Scotts Valley – Best City For Commuting to Santa Cruz
Scotts Valley sits about 6 miles north of Santa Cruz along Highway 17. The town has about 12,000 residents and offers a modern, suburban feel. It’s close enough to Santa Cruz to access everything the city offers, but far enough away to have lower housing costs.
Scotts Valley homes offer a more modern design at lower prices than Santa Cruz. The city is currently expanding by building more housing and retail opportunities. The town has good schools and parks, making it popular with families.
It’s easy to get to the Bay Area; you could walk to the beach if you wanted to, there’s no traffic, most people are nice, and city services and parks are between good and great. Local movers in Scotts Valley are usually quicker to get you moved in and better at helping with information and local tips.
The downside is that Scotts Valley doesn’t have the charm or character of Santa Cruz. It’s more of a typical California suburb. But for people who need affordability and still want to be close to Santa Cruz, it works well.
Capitola – Best Walkable and Artistic City
Capitola is right next to Santa Cruz, about 5 miles east along the coast. It’s a small beach town with about 10,000 people. While not as cheap as Watsonville, Capitola offers slightly lower housing costs than Santa Cruz while keeping that beach town vibe.
The town has a busy boating community and an artistic collection of colorful bungalows near the beach. The downtown area has shops, restaurants, and cafes. Capitola Village is a popular spot for locals and tourists. The beaches here are often less crowded than Santa Cruz Beach.
People love the walkable downtown and the close-knit community feel.
The challenge with Capitola is that while it’s more affordable than Santa Cruz, it’s still expensive by national standards. Homes and rentals cost significantly more than in Watsonville or Ben Lomond. But if you can afford it, you get to live right on the beach with easy access to Santa Cruz.
Soquel – Best Middle Ground For Affordability and Location
Soquel is an unincorporated area between Santa Cruz and Capitola. About 10,000 people live here. The area has a more relaxed, rural feel than Santa Cruz but still offers easy access to beaches and shopping.
Soquel isn’t a flashy, high-profile place, and that’s just the way most local residents describe and like it.
Soquel offers a middle ground between affordability and location. You’re close to everything without paying full Santa Cruz prices. The area has good schools and parks. Soquel Drive is the main road with shops and restaurants.
Live Oak – Best City For Affordable Coastal Living
Live Oak is another unincorporated area in Santa Cruz County, located between Santa Cruz and Capitola along Highway 1. The area has a mix of residential neighborhoods and small businesses.
Live Oak is more affordable than Santa Cruz proper while still being right on the coast. The area has beaches like Twin Lakes State Beach and parks along the San Lorenzo River. Housing options include single-family homes and apartments.
The area doesn’t have as much of a defined downtown as Capitola or Santa Cruz, but you’re close enough to both cities that it doesn’t matter much. Live Oak gives you coastal living at a lower price point.
Aptos – Best City For Quiet Traffic and Residential Vibe
Aptos sits about 10 miles south of Santa Cruz along Highway 1. The area has about 6,000 residents and includes the Rio Del Mar neighborhood near the beach. Aptos offers a quieter, more residential feel than Santa Cruz.
Aptos Village has shops, restaurants, and a farmers’ market. The area has good schools and is popular with families. Seacliff State Beach is a big draw with its historic cement ship pier.
Housing in Aptos costs less than in Santa Cruz but more than in Watsonville. You get a beach town lifestyle without quite as high a price tag as Santa Cruz proper.
Which City Near Santa Cruz to Choose When Moving?
Whether these more affordable areas make sense depends on your situation. If you work remotely or have a job in Watsonville, Salinas, or Monterey, moving to Watsonville could save you thousands of dollars per month in housing costs. That adds up to tens of thousands per year.
Families who want more space and don’t mind a commute often pick Ben Lomond, Scotts Valley, or Watsonville. Young professionals who want to be close to Santa Cruz nightlife and culture might choose Capitola or Live Oak despite the higher cost.
One thing to remember is that even the most affordable areas near Santa Cruz are expensive by national standards. Watsonville might be cheap compared to Santa Cruz, but it’s still pricey compared to most of America. The median home value of $671,037 in Watsonville would buy you a mansion in many parts of the country.
In addition, if you’re moving from somewhere already inside the Bay Area, make sure to pick local Santa Cruz movers to help you with the process. Their local experience, physical addresses, and community relationships should make it an easier process on your end.
But for people who need to live in this area for work or just love the California coast, these more affordable cities offer a way to make it work without spending $60 per hour just on rent.
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