Santa Cruz’s hot housing market leads to skyrocketing rents

The hot real estate market on the Central Coast may be great for buyers. But it has its serious downsides. That’s especially true in Santa Cruz County, where officials said skyrocketing rents are causing lots of anxiety.

“Wasn’t always this way. I’ve had my fair share of housing horror stories. I’ve definitely had packed houses where you have two to three people in a room,” resident Robert Singleton said

Singelton said rents are just too high for people trying to make a living in Santa Cruz.

“It’s $1600 for a one bedroom. So that’s pretty high,” Singleton said, reflecting as he was looking for listings on Craigslist.

The market is so competitive because demand is high and supply is low. It’s an issue county leaders are trying to address.

“It affects quality of life, and so that’s what we’re seeing; a lot of anxiety to even find a home and that’s not only for UCSC student. But it’s for people who have grown up in this community and some of whom are concluding they simply can’t afford to stay in Santa Cruz,” Kathy Molloi Previsich, Planning Dir. Santa Cruz County.

Last year, the state determined the county needs just over 13 hundred new units by 2023. Santa Cruz updates it housing plan every eight years. This time around, planners are focusing on development.

“To serve the needs of singles and students and the workers, smaller households,” Previsich said.

The commission recommends updating to zoning codes, because they’re tough to deal with.

“When we look at some of the development standards, they don’t realistically support feasible development of the housing types,” Previsich said.

Previsich said those types of housing include accessory dwellings like apartments over garages and mixed-use development.

Singleton, who attended the meeting, said he’s hopeful, but knows obstacles are ahead.

“It’s getting through the political battles of people who are going to resist it. You know people don’t want to see higher density housing when it’s right next to them, or in their neighborhoods,” Singleton said.

But he said if the county wants young professionals like him to stick around, something needs to change. The Santa Cruz Planning Commission commented on and approved the first draft of the housing plan. Now it will head to the Santa Cruz County Board of Supervisors.