The Most Expensive Beaches in California to Buy a Second Home

California is the Golden State for good reason! The gorgeous and radiant sunshine that catches nearly every part of Cali is certainly a sight to behold. And, for those who want to behold it forever, you might be considering purchasing a second home in the area.

There are plenty of reasons why someone would want a second home. Maybe it’s for personal use, like as a permanent vacation spot, or maybe it’s to begin investing in real estate/rental properties. In either case, when you’re dealing with the most expensive beaches in California, it’s important to understand what you’re getting yourself into. More specifically, understanding the financial costs of the endeavor.

How are we going to measure the most expensive beaches in California? By using the Zillow Home Values index. There is no one end-all-be-all measurement for the expensiveness of an area, so this number measures monthly property value changes in certain areas. Now, without further adieu, let’s determine exactly how expensive these five beaches are and whether or not you should even consider investing in one!

1. Malibu Beach

If you haven’t heard of Malibu, then you’ve probably been living under a rock. Malibu Beach is home to a number of celebrities (and their beach houses) and is located only 30 miles northwest of Los Angeles. It’s associated with glamour, beauty, and, most notably, wealth. This means, of course, that this beach is the opposite of affordable. In fact, forget California- Malibu is one of the most expensive beaches in the United States to find a second home.

If you don’t consider yourself a “beach person,” rest assured that Malibu will make you change your mind. The sandy shores and cultural obsession with surfing and other water sports will leave you immediately captivated. Just because it’s full of celebrities doesn’t mean that your average person can’t enjoy their visit, but it may mean that you’ll find difficulty locating an affordable new property.

According to the Zillow Home Value Index, the average Malibu home sits at a whopping $3.4 million as of August 2023. Though for most families seeking a second home, this price is egregious, it is worth noting that the home value in the area has steadily decreased by 7.8% each year. So despite being one of the most expensive beaches in California, it is also one of the least lucrative in terms of investment.

2. Newport Beach

Newport Beach is a fantastic town that is located by the beach of the same name. When one thinks of Newport Beach, wealth and progress are two things that immediately come to mind. In particular, this area has an incredibly bustling art scene, with the Orange County Museum of Art located there. Between that and the Newport and Balboa Piers, there’s no shortage of things to do in the area.

This kind of excitement makes it incredibly sought after, particularly for those with timeshares and rental properties. To be fair, who wouldn’t want to spend an afternoon strolling through the Sherman Library and Botanical Gardens? You can end the day with a dip in the crystal clear waters of the beach before venturing off to Balboa Island. All this comes at a cost, of course.

That cost, it seems, is an average of slightly over $3 million as of August 2023. In the past year, prices have held themselves steadily, only declining a mere 1.7%. This means that, while this is certainly one of the most expensive beaches in California, a second home here would be a worthwhile investment nonetheless.

3. Laguna Beach

The previous two beaches we’ve listed have been considered some of the most expensive beaches in California because of their popularity. Incredibly tourist-packed, they are areas that speak to the hustle and bustle of life as a Californian. That is what makes Laguna Beach stand out so much. Before anything else, this area is known for its gorgeous natural landscape. The area considers itself a hidden gem of California, and for good reason.

The city is home to over 20,000 acres of protected wilderness for you and your family to explore. This means that when you purchase a second home here, it is guaranteed never to become boring. It doesn’t matter what your preference of activity is- hiking, cycling, or watching wildlife. Even if you’re a homebody, the architecture of the local homes will prove to be a sight to see. There is certain to be something at Laguna Beach that excites and entices you regardless of your preferences.

Due to its combination of accessibility and seclusion, a second home at Laguna Beach is going to run you quite a pretty penny. Specifically, it will run you an average of $2.7 million, which has gone down 4.5% over the past year.

4. Santa Monica Beach

If you like to party and want a second home that is always surrounded by the sounds and sights of nightlife, then Santa Monica Beach might be your (pricey) second house dream come true. There are an endless number of clubs, carnival rides, eateries, and more within the city’s limits. You could even spend an entire day and night seeing everything on the iconic Santa Monica Pier!

Because of the area’s insane popularity, it is a choice destination for celebrations like birthdays and bachelor/bachelorette parties. It’s not uncommon for the party to continue going into the night, too. If you’re a party person, then you’ll be pleased to hear how close the action is at all times. Sometimes, this is the main appeal that people see when purchasing a second home at this beach.

The accessibility of Santa Monica comes with a price, though! Based on the August 2023 Zillow Home Value Index, the current average price for a home in Santa Monica is $1.6 million, and this number has decreased by 6.0% over the past year.

5. Monterey Bay

Though technically better known as Monterey Bay, this area is full of smaller beaches that make up the greater landscape. And Monterey, the town housing these areas, has the incredible joint appeal of being both laid-back and exciting. You don’t need to spend your days doing intense activities, but the option is there should you want to!

There’s so much to do in this town! You can take a visit to the iconic Monterey Bay Aquarium, or you can check out the childhood home of famous American author John Steinbeck. The cozy town has a number of local shops and delicious eateries, too, ensuring you never find yourself bored. But all of these benefits come together to rack up a hefty price point. In your search for a second home, this is probably going to be one of the most expensive California beaches that you find. The average home value in the town is above $1.1 million, and this number went down 4.7% in the past year.

Summary of the Most Expensive Beaches in California to Buy a Second Home