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Market Report · Q1 2026

Santa Cruz County Rental Market Report.

Average rents up 2.3% year-over-year. Vacancy holds steady at 4.1%. Coastal 2BR condos remain the strongest segment.

Published April 15, 2026 · By Solaris Property Management · Data sources noted at the end of the report.

Executive summary

Santa Cruz County rentals held steady through the first quarter of 2026. Average asking rent across all property types is $3,820/mo — up 2.3% from Q1 2025 and roughly flat quarter-over-quarter. Vacancy sits at 4.1%, slightly tighter than the prior quarter. Days-on-market for our listings averaged 17 days from list to signed lease, with coastal Capitola, Aptos, and Live Oak properties closing fastest.

The story of the quarter: stability after several years of post-pandemic correction. Owners who reset rents to 2024 levels are filling vacancies quickly. Owners who priced toward 2022 peaks are sitting on market longer — typical days-on-market for those listings runs 35+. This report breaks down rents by city and property type so you can calibrate.

Average rents by city — Q1 2026

City 1BR 2BR 3BR YoY
Santa Cruz$2,600$3,500$5,200+2.5%
Capitola$2,750$3,700$5,600+3.1%
Aptos$2,600$3,500$5,000+2.8%
Soquel$2,500$3,400$4,800+2.1%
Scotts Valley$2,500$3,300$4,700+1.8%
Live Oak$2,400$3,200$4,600+2.4%
Watsonville$2,000$2,600$3,400+1.4%

Figures reflect typical single-family or condo asking rents for properties listed in Q1 2026. Range varies by lot, view, condition, and street.

Vacancy & days-on-market

County-wide vacancy of 4.1% represents a market in equilibrium — neither tight enough to push rents aggressively, nor loose enough to force concessions. Notable differences by city:

Trend of the quarter — coastal condos lead

Two-bedroom condos within a half-mile of the coast — Capitola Village, Pleasure Point, Rio del Mar, Seacliff — outperformed every other segment, with average days-on-market of 9 days and rents 3-5% higher than this time last year. The driver is renter preference for low-maintenance properties combined with quality of life. Owners considering a sale should also evaluate whether the property pencils better as a long-term rental at current rates than as a sale + reinvestment.

What it means for owners

Three takeaways:

  1. Don't chase 2022 peaks. Properties listed within 5% of comparable Q1 2026 rents are signing in two weeks. Properties listed 15%+ above are sitting at 6+ weeks. Vacancy cost rapidly outpaces any "extra" rent you might capture.
  2. Coastal SFR and condos are your asset. If you own near the water and you're not renting on a 12-month lease at current rates, you're leaving money on the table. The same property as a vacation rental can earn more, but with significant management complexity and STR permit limitations — see our vacation rental program.
  3. The South County rebound is real. Watsonville and Freedom-area rentals saw their first YoY rent increase in 18 months. Owners holding South County rentals: this is the quarter to refresh and remarket if you've been on hold.

Methodology & sources

This report compiles Solaris Property Management's own placement data (~30 placements per quarter) with public asking-rent data from Zillow Rentals, Apartments.com, and Craigslist scrapes for Santa Cruz County. Vacancy rate is calculated as a 30-day rolling weighted average of available listings per occupied unit. Days-on-market is from list to executed lease, not list to ad removal.

These are market-level averages; your property's number depends on its address, condition, and timing. For an address-specific number, request a free rental analysis.

Make this report personal

Want the number for your address?

Quarterly averages are a starting point. A free Solaris rental analysis pulls comps within a quarter-mile of your address and gives you a recommended list rent — usually back within 2 business days.