Looking at the 111 recently closed transactions divided by type, the combined sales of condos and townhomes account for a significant portion, comparable to single-family home sales. If we examine how single-family homes and condos-townhomes differ within the same budget, the character of the Santa Monica market becomes clearer.

According to Redfin, as of June 2026, the median sale price for all housing types in Santa Monica is $1,636,609, which is a 1.7% decrease from a year ago. By type, the median price for single-family homes has risen to around $3,850,000, while condos averaged $1,250,000 as of January 2026. The median price for the 111 transactions that included both condos and townhomes during the same period was recorded at $1,335,000.

When comparing the two options side by side, one may find that while single-family homes offer complete enjoyment of a yard and independence, their purchase price is three times that of condos. Condos and townhomes allow buyers to enjoy the same school districts and locations while significantly reducing budget burdens, but they come with substantial monthly HOA fees that must be considered.

The reason condos and townhomes are consistently chosen in Santa Monica is that they provide access to desirable school districts and beach proximity at a much lower entry barrier than single-family homes. Conversely, families who want to raise children in a yard or value independent space may lean towards single-family homes. It seems that lifestyle choices weigh more heavily than budget in determining which option is better.

Single-family homes are solely owned with maintenance fully the owner's responsibility, and they typically have no or low HOA fees, while condos have the highest management fees as the management takes care of most of the building's structure and appearance. Townhomes share walls but have their own land, with exterior maintenance handled by the HOA and interior maintenance shared by the owner.

This aspect may be advantageous for investors looking for rental income, but it can also present challenges. Condos have lower purchase prices, making them favorable for calculating rental yields, but HOA fees can significantly eat into net profits. Single-family homes have lower management costs, but their high initial purchase prices make yield calculations difficult. While rental demand in Santa Monica is generally stable, it is important to note that one cannot assume prices will continue to rise, so the risk of vacancies should also be considered.

For families newly immigrating from Korea and preparing to settle, purchasing in Santa Monica may be burdensome, so it might be wise to first rent to experience the area before transitioning to buying a condo or townhome. If school districts are a priority, checking assigned schools during the rental phase can help inform later decisions.

Nationally, the trend is increasing the proportion of townhomes in new housing supply, but in Santa Monica, where developable land is extremely limited, this trend manifests more strongly in the existing condo market rather than new projects.

Families coming from other states should be aware that California property taxes are based on purchase prices and that both condos and townhomes incur separate monthly HOA fees, which may be easy to overlook based on their previous residences. School district boundaries also change frequently, so it is advisable to verify the assigned school for the specific address before purchasing.

The level of mortgage interest rates is also a factor to consider. Condos have lower purchase prices, resulting in smaller loan principal amounts, which means they are less affected by interest rate fluctuations. In contrast, single-family homes have larger loan principal amounts, so even slight changes in interest rates can significantly impact monthly payments. This aspect can be advantageous, but it can also present challenges when compared side by side.

Santa Monica has a significant price gap between single-family homes and condos-townhomes, making it a market where one should weigh the pros and cons rather than definitively stating that one is better than the other. This article is not investment or legal advice, and it is recommended to consult with a professional before making any actual contracts.