Monterey, CA, a region celebrated for its magnificent coastlines, world-class vineyards, and a historical tapestry that creates a vibrant backdrop for those looking to invest in the city’s thriving real estate market.
Investing in Monterey, CA real estate leverages both the area’s natural allure and its long-standing reputation as a hub of culture and affluence.
Why Monterey, CA Is a Hotspot for Real Estate
The secret behind the strong demand for real estate in Monterey CA lies in its dynamic integration of natural beauty, historic significance, and an economy that supports both tourism and a growing community.
Home to some of California’s most glorious stretches of coastlines, top-tier wineries, and culinary delights, Monterey’s property market is not just surviving; it’s flourishing. The city’s neighborhoods offer a vast inventory spanning from luxury estates to charming cottages.
Current Market Trends
As of February 2025, homes in Monterey, CA sold for approximately the asking price on average. The median listing home price in Monterey, CA was $1.3 million, trending up 11.4% year-over-year. The median home sold price was $1 million.
Monterey CA real estate market is a balanced market, which means that the supply and demand of homes are about the same. On average, properties sell after 54 days on the market.
Best Neighborhoods in Monterey, CA
Peter's Gate
Peter’s Gate was named after Charles Rollo Peters, a painter from San Francisco who loved the local artist scene in Carmel and painted the old Monterey adobes in various states of ruin.
Peters once owned a gated estate which he later sold. It was subdivided into what is now referred to as the Peter’s Gate neighborhood.
Despite its proximity to downtown Monterey, you will feel as though you are out in the suburbs. Like most of the Monterey Peninsula, Peter’s Gate started to grow in the 1910s through the 1950s, and many homes reflect that era.
The neighborhood is a smorgasbord of architectural styles, from Spanish revival style and French country homes to mid-century modern homes, Craftsman style homes, and Tudor style homes.
Homes located near the top of Peter’s Gate offer stunning ocean and Monterey Bay views. These can be more expensive compared to the average cost for a home in the neighborhood.
Del Monte Beach
Located at the southern edge of Monterey Bay, Del Monte Beach offers oceanfront living at its finest.
Del Monte Beach residents enjoy the best of coastal life with numerous opportunities for water sports and marine wildlife sightings, as well as breathtaking views of the ocean, dunes, sunsets, and city lights.
This quaint neighborhood is tucked away from the main streets, providing a serene escape just footsteps from the water’s edge.
You can always walk outside and feel the sand between your toes while appreciating picture-perfect sunsets. These are rare moments you won’t find in many other communities.
The properties in Del Monte Beach range from single-family homes to condo units within luxury complexes and apartment buildings. With an ocean-facing home, you get to wake up to spectacular views of Monterey Bay from your window.
Old Town Monterey
Old Town Monterey offers a unique blend of the city’s storied past and the vibrance of its contemporary local culture, not to mention some of the most breathtaking views of the cityscape and Monterey Bay.
Strolling along the streets of this neighborhood, you’ll see well-preserved landmarks. The Path of History, a two-mile stretch that puts you face to face with the region’s rich heritage, takes you on a journey past iconic sites like Colton Hall, the Larkin House, and the Cooper Molera Adobe.
“Spaghetti Hill” features a mix of single-family cottages and apartment buildings, many of which hold historic designations by the city of Monterey, the state of California, or the National Registry.
In the heart of Old Town Monterey, Alvarado Street is bustling with over 400 shops, restaurants, hotels, and businesses. The Old Fishermen’s Grotto, Montrio, Alvarado Street Brewery, and Old Monterey Marketplace are some of the must-visit spots to include in your list as you explore the area’s culinary scene.
Types of Homes Available
Contemporary
Contemporary properties in Monterey, CA, offer some of the most interesting design elements, such as sleek concrete or stone exteriors, vast walls of glass that frame the ocean views, and open-concept floor plans.
Mediterranean-Style
Mediterranean-style homes characterized by red tile roofs, stucco finishes, carved doors, and metalwork are popular in the area. This type of architecture is ideal for anyone looking for a house that can stand the test of time.
Cottages
Cottages in Monterey often feature porches, arched roofs, and windows, which are well-suited for beach settings.
Ranch-Style
Popularized in the 1950s, ranch-style homes remain popular because of their single-story, close-to-the-ground look and open layout. These dwellings are designed to highlight outdoor living spaces with porches, sliding glass doors, attached garages, and single-level living.
Pros and Cons of Living in Monterey
1. It’s a safe place to live in
According to recent data, the rate of violent crimes in Monterey is 37% lower than the state average and 25% lower than the national average. The Monterey Police Department is well-staffed and well-trained to keep the city safe.
2. Downtown is vibrant and full of life
Downtown Monterey, the heart of the city, is within walking distance of the best of everything the city has to offer, including its many beaches and restaurants. Some exciting places to check out include the Monterey Bay Aquarium, Old Fisherman’s Wharf, Cannery Row, Pebble Beach, Point Lobos State Reserve, and Big Sur.
3. The weather is pleasant
Monterey residents and tourists enjoy the mild weather. Summers have dry, clear, and pleasant weather.
4. The schools are well-rated
Students in Monterey have access to excellent public education from kindergarten through high school through the Monterey Peninsula Unified School District.
5. There is a wide array of great restaurants
There are plenty of restaurants in Monterey, serving everything from fast food to fine dining. Monterey’s Fish House serves the best seafood, from oak-grilled oysters and seafood pastas to calamari and clams.
Cons of Living in Monterey, CA
1. The cost of living is high
Monterey’s overall cost of living is 74.9% higher than the national average. The average cost of living in this city is around $3,280, and housing is just as expensive, with an average rent of $2,374 and a median home price of $1.2 million.
2. Traffic congestion can be a challenge
It is inevitable for traffic to get worse during the height of the tourist season as well as major events, such as the AT&T Pebble Beach Pro-Am and Car Week.
Conclusion
Whether you’re looking to buy a home in Monterey, CA, or to invest in a property, this city is definitely a great place to fulfill your real estate goals.
If you’re ready to explore the neighborhoods in Monterey, CA, give me a call at (206)-501-8484 or send me an email at matthewbchapman@windermere.com to schedule an appointment.
Frequently Asked Questions
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Is Monterey, CA, a good place to buy real estate?
Yes, it is. In fact, Monterey, CA, is a prime location for property investment. -
What are the most affordable neighborhoods in Monterey?
Marina and Seaside offer more reasonably priced real estate options. -
Can you buy oceanfront property in Monterey, CA?
Yes, specifically in Pebble Beach, which is considered one of the top areas for real estate investment in Monterey, CA, due to its prestige, luxury amenities, exclusive golf courses, and spectacular oceanfront homes.
