Having observed the Monterey Peninsula for nearly 20 years, the most common question I hear is why home prices in Pebble Beach are so high. Even if you're not a golf fan, you've likely heard of this area, known for hosting the U.S. Open, as it is a golf community along the Pacific coastline.

The median home price in Pebble Beach ranges from $3 million to $4.5 million, with lots directly on the coastal cliffs sometimes exceeding $10 million. Considering that the overall median home price in Monterey County is around $900,000, this creates a gap of three to ten times.

Carmel-by-the-Sea is also a prominent upscale residential area in the region. Famous for its fairy-tale cottage-style homes and art galleries lining the downtown, the median home price here is around $2.5 million to $3.5 million. It is also well-known as the city where Clint Eastwood served as mayor.

Pacific Grove maintains a relatively accessible price range compared to Pebble Beach or Carmel while still offering coastal views. The median home price is around $1.5 million to $1.8 million, making it one of the more affordable options on the Monterey Peninsula.

The background for these areas becoming affluent neighborhoods is largely due to the scarcity of natural scenery. The coastal cliffs represented by the 17-Mile Drive, combined with cypress trees and golf courses, are considered irreplaceable assets in California. Strict building regulations have been in place since the early development, limiting supply and supporting prices.

• Pebble Beach: Pacific coastal golf community, median $3 million to $4.5 million
• Carmel-by-the-Sea: Art gallery downtown, $2.5 million to $3.5 million
• Pacific Grove: Coastal views, relatively low entry barrier of $1.5 million to $1.8 million

From the perspective of Korean investors, the Monterey Peninsula is often considered more for second homes or retirement locations rather than primary residences. It is common to see those who have built wealth in Silicon Valley relocating to this area after retirement.

The gap between this region and others varies significantly based on proximity to the coast. As you move inland toward Salinas Valley, prices drop to less than half, illustrating how strong the coastal premium is even within the same county.

If approaching for a second home or investment, it's advisable to consider not only the symbolism of Pebble Beach or Carmel but also the unique maintenance costs and insurance rates associated with coastal properties, as well as the short-term rental regulations that arise from being in a tourist area.