It is rare to find a coastal town with as much temperature variation between neighborhoods as Monterey. Given its strong tourist appeal, the differences in location for each property tend to be directly reflected in the prices.

Pacific Grove is a neighborhood known for its Victorian-style homes, with median sale prices typically ranging from $1.4 million to $1.8 million. Due to the limited supply of properties, recent trends appear to show a gradual increase.

New Monterey, located near the aquarium and Cannery Row, generally sees prices in the $900,000 to $1.2 million range. Recently, an increase in demand for short-term rentals has been observed, leading to a gradual rise in prices.

Near downtown Monterey, condos and small homes often trade in the range of $700,000 to $950,000. The past year has shown a stable market with little clear direction.

From an investment perspective, New Monterey stands out. With consistent tourist demand and properties that already have short-term rental licenses often commanding a premium, it is considered to have medium to long-term appeal linked to tourism infrastructure.

In terms of rental yield, the Monterey market typically shows that short-term rentals often yield higher returns than traditional long-term rentals. However, the city of Monterey operates a limited issuance of short-term rental licenses, making the availability of a license a key factor affecting profitability.

Risk factors to consider include the rising insurance costs unique to coastal homes, a high dependency on tourist demand, and the potential for profit structures to be disrupted if short-term rental regulations are tightened.

For Korean households, Monterey is often approached more as a second home or investment rather than a primary residence. It is essential to verify the presence of a short-term rental license before signing a property contract to ensure actual profitability.