More than 65% of workers on Santa Barbara County’s South Coast cannot afford to live there, according to a new report from the 2024-25 Santa Barbara County Civil Grand Jury. Many people commute from outside the area.
“Teachers, nurses, firefighters and hospitality workers cannot afford to live in the communities they serve,” the Grand Jury wrote in the report released this week.
The report points to rising housing costs, a lack of new construction, and more homes being used as short-term rentals or seasonal properties that often remain empty.
Citing those trends, the Grand Jury described the housing situation as a crisis for low- and moderate-income residents and called for urgent action from local governments.
While the county and the cities of Santa Barbara, Goleta and Carpinteria have met state requirements to plan for housing, the report found they have made little progress toward actual construction.
Much of that planning has taken place through the Regional Housing Needs Allocation process. Under RHNA, local governments must identify land suitable for new housing across a range of income levels. The current cycle runs from 2023 to 2031 and assigns nearly 15,000 units of the county’s 24,856-unit goal to the South Coast.
The Grand Jury report emphasized that RHNA mandates planning, not construction. It stated that it is “highly unlikely that enough of the identified land will be developed to meet the affordable housing targets.”
The report concluded that while some progress is being made, much more is needed to overcome the region’s deepening housing crisis. It urged local governments to act with greater urgency, coordinate efforts across jurisdictions, and remove barriers that prevent affordable and workforce housing from getting built.
The report was delivered to Santa Barbara County and the cities of Santa Barbara, Goleta and Carpinteria, all of which are required to respond to its findings and recommendations within 90 days.
Factors Holding Back Housing
The report cites high costs, limited funding and a complex approval process as key barriers to building new housing.
“The average cost to build a single affordable unit in the city of Santa Barbara is approaching $1 million,” the report said.
Public funding for affordable housing is described in the report as inadequate, oversubscribed and difficult to access.
As of March 25, the Housing Authority of the City of Santa Barbara paused issuing new Section 8 vouchers because of uncertainty at the federal level. The report noted that developers often rely on those vouchers to help make affordable projects feasible.
Community opposition, often described as “Not In My Backyard,” or NIMBYism, also was cited as a major barrier. While some land use policies were designed to preserve neighborhood character, the report said those same rules have made it harder to approve housing where it is most needed.
The Grand Jury recommended that the Santa Barbara County Board of Supervisors and the city councils of Santa Barbara, Goleta and Carpinteria each create a dedicated position to coordinate and facilitate the approval process for housing projects. The person in that role should have “the authority to bring together all interested parties to arrive at an expeditious resolution of any issue,” the report said.
Signs of Progress and Recommended Solutions
While the obstacles remain significant, the report highlighted areas of progress and urged local agencies to expand on those efforts.
Both Santa Barbara County and the City of Santa Barbara have created housing trust funds certified as Community Development Financial Institutions. That status allows them to apply for federal housing assistance.
Santa Barbara County funds its CDFI with developer fees. The City of Santa Barbara added $3.5 million to its fund in June.
The Grand Jury recommended that Goleta and Carpinteria establish such funds and urged all jurisdictions to seek support from private donors and philanthropic groups to expand local resources.
The report also acknowledged efforts already underway by local agencies and nonprofit groups. Projects with 100% affordable units are in progress through People’s Self‑Help Housing, the Housing Authority of the City of Santa Barbara and the Housing Authority of Santa Barbara County. The city’s Housing Authority broke ground in February on the 48-unit Bella Vista development, which will serve families earning up to 60% of the area median income.
The report acknowledged large employers such as Cottage Health, Yardi Systems, the Rosewood Miramar Beach Hotel and the Santa Barbara Cemetery Association, which have sponsored workforce housing for employees.
Accessory dwelling units, or ADUs, also are contributing to a new housing supply.
More than 1,000 have been completed or are in progress in Santa Barbara under streamlined state laws, according to the report. However, “city of Santa Barbara staff estimate that only 65% of the ADUs developed will be affordable by state definitions.”