Santa Monica ranks as the second most expensive city for renters in the Los Angeles metro area, with one-bedroom apartments commanding a median rent of $2,950 per month, according to a new report released Thursday.
The findings come amid a broader housing affordability crisis that has seen median home sales prices nationwide surge from $313,000 in the first quarter of 2019 to $416,900 in the first quarter of 2025.
The Zumper Los Angeles Metro Area Report, which analyzed active listings across metro cities last month, highlights stark disparities in rental costs throughout the region. Beverly Hills topped the list as the most expensive city with one-bedroom units priced at $3,210, while San Bernardino offered the most affordable options at $1,410.
Housing experts point to multiple factors driving the region’s persistent affordability challenges, including rising interest rates that have climbed dramatically from historic lows. The average 30-year fixed mortgage rate has more than doubled from 2.65% in January 2021 to 6.81% in May 2025.
“With the combination of inflated prices and high interest rates in play, many consumers may wonder if they can even afford to buy a home,” noted WalletHub in its report on 2025’s Most Affordable Cities for Home Buyers.
That report ranked Santa Monica near the bottom nationally for housing affordability, placing it 299th overall among 300 U.S. cities analyzed and 132nd among small cities. The coastal community performed particularly poorly in several key metrics, ranking 262nd in housing affordability, 298th in cost per square foot, and dead last (300th) in rent-to-price ratio.
Further complicating the region’s housing landscape is a significant shift in development patterns. A separate Downtown Construction Report found that only 19.1% of new apartments built in Los Angeles between 2020 and 2024 were located in the downtown area — representing one of the steepest declines in downtown-focused development among major U.S. metropolitan areas.
This marks a dramatic change from the previous decade when downtown Los Angeles captured 50.5% of new apartment construction, signaling a potential reversal of urban revitalization efforts that had gained momentum throughout the 2010s.
Despite this shift away from downtown development, the report noted that adaptive reuse — converting existing buildings into residential units — has maintained a steady presence in the downtown housing market, accounting for 14.5% of new downtown units this decade, unchanged from the previous decade.
Corona registered the fastest year-over-year rent growth at 8.7%, followed by Beverly Hills at 7% and Alhambra at 4.7%. On a month-over-month basis, Oxnard saw the most significant increase at 4.8%.
The California statewide median rent for a one-bedroom apartment stood at $2,054 last month, substantially higher than many other regions nationwide but still well below the premium rates commanded in coastal communities like Santa Monica.
For prospective homebuyers in Santa Monica, WalletHub’s analysis painted a challenging picture across multiple affordability metrics, though the city did perform relatively well in several categories, ranking 38th for maintenance affordability, 37th for real estate tax rate, and 46th for vacancy rate.
The continued escalation of housing costs throughout the Los Angeles metro area comes as policymakers and housing advocates debate potential solutions to address affordability challenges, from expanded rent control measures to increased density and transit-oriented development.
With 5,792 new apartments built in downtown Los Angeles between 2020 and 2024, questions remain about whether the region’s development patterns will adequately address growing housing demand across all income levels.