In Santa Monica, it's common to weigh the choice between staying in a single-family home or moving to a condo. The gap between these two options is particularly significant in this area, making it hard to definitively say one is better than the other.

A family I recently consulted has lived in a single-family home near North of Montana for a long time, but they found it burdensome to maintain a large house after their children became independent. I outlined the pros and cons of both options for them.

First, comparing electricity costs, as of August 2026, the average electricity rate in Santa Monica is 29 cents per kWh, which is about 42 percent higher than the national average. The standard average rate from SCE as of January 2026 is 34.5 cents per kWh, which drops to 33.2 cents with the California Climate Credit. If they use a time-of-use rate plan, off-peak rates are 24 cents per kWh, while peak rates can rise to 58 cents. Single-family homes typically have larger cooling areas, so this difference is reflected in the bills, whereas condos, being relatively smaller, have less burden.

When looking at home prices, the gap becomes even clearer. As of August 2026, the median sale price for all of Santa Monica is $1.8 million, and breaking it down for the first quarter of 2026, the median price for condos is $1.3 million, while single-family homes are at $2.9 million. As of June, the median price for condos and townhomes is confirmed at $1.335 million. This indicates that the difference between single-family homes and condos exceeds $1 million, suggesting that moving to a condo could be financially advantageous. However, the burden of thoroughly reviewing HOA fees, reserve funds, and special assessments before signing a contract can be a downside.

Property taxes are based on the purchase price under Prop 13, so older single-family homes tend to have an advantage. Conversely, if you are over 55, you can transfer the current low property tax basis to a newly purchased condo under Prop 19, which significantly offsets the disadvantages of moving to a condo. This applies statewide in California and has been in effect since April 2021, allowing for up to three transfers in a lifetime.

Another advantage of single-family homes is having a yard and separate space, which is great for when grandchildren visit. On the other hand, a benefit of condos is that the management office takes care of building maintenance and security, and there's less to worry about when leaving home for travel or long hospital stays. Both factors are significant in retirement living.

Additionally, regarding school districts, Santa Monica is generally regarded positively among Korean families, but this is more relevant to the interests of the younger generation. In retirement housing choices, access to hospitals and public transportation often becomes more important than school districts.

This family ultimately said they could only determine which option suited their lifestyle after organizing their frequency of grandchild visits and future travel plans.

Even within Santa Monica, neighborhoods closer to the coast and those further away may have different electricity tier rates. When comparing properties, it's wise to verify estimated rates based on exact addresses.

In summary, single-family homes have high maintenance and electricity costs but can maintain a lower property tax basis upon sale. Condos have much lower sale prices, allowing for more cash on hand, but introduce new variables like HOA fees and reserve funds. Which option is better depends on individual financial plans and lifestyles, so it seems necessary to compare both options side by side with actual numbers. Tax and HOA conditions can vary by property and situation, so it's advisable to consult real estate and tax professionals before making a contract. This is not investment or legal advice.