If you’re dreaming of moving to the coast, you’ve probably narrowed it down to the northern side of Monterey Bay. It’s hard to go wrong here—both Santa Cruz and Capitola offer access to redwoods, surfing, and that incredible ocean air. But once you look past the postcards, these two neighbors feel drastically different.
I always tell my clients that choosing between them usually comes down to energy levels. Santa Cruz is the “big city” of the area (with a population around 61,000), bringing university energy, a gritty arts scene, and a faster pace. Capitola, with fewer than 10,000 residents, is the “village”—a tight-knit, picturesque resort town where life moves a little slower.
Here is the quick verdict: If you want variety, nightlife, and don’t mind a little hustle, look at living in Santa Cruz. If you want a walkable, close-community feel and quiet evenings, Capitola is likely your speed.
Vibe & Lifestyle: Surf City vs. European Village
The daily rhythm in these two towns is distinct. Santa Cruz is eclectic, artsy, and active. It’s home to UCSC, the famous Boardwalk, and a vibrant downtown that stays awake after dark. You’ll see a real mix of people here: students biking to class, tech workers commuting over the hill, and long-time locals who have been surfing Steamer Lane for decades.
Capitola, on the other hand, feels like a permanent vacation. It’s colorful and picturesque—literally, the Venetian-style houses along the creek are iconic. The vibe here is slower and more community-focused. You’ll see neighbors catching up at the Capitola Art & Wine Festival or walking dogs along the Esplanade.
The demographics reflect this shift in energy. Santa Cruz tends to skew younger, largely due to the university influence and the active nightlife scene. Capitola generally skews a bit older (median age is usually 40+), attracting established professionals and retirees who want that “village” lifestyle without the college town volume.
Housing Market Comparison (2026 Update)
As of early 2026, the housing market in both towns is stabilizing after the wild ride of the last few years. However, both remain premium markets, and you need to be prepared for the price tag that comes with coastal living.
Santa Cruz offers a much wider variety of inventory. You can find everything from Victorian fixers near downtown to Westside bungalows and luxury cliffside estates. Because the city is larger, you have more neighborhoods to choose from, though competition remains fierce for turnkey homes.
Capitola is a different story. The inventory here is incredibly tight because people rarely leave once they buy in. You’ll see high premiums for homes in sought-after pockets like “Depot Hill” or the “Jewel Box.” While the median prices are often similar to Santa Cruz, the lots in Capitola are generally smaller, meaning you are often paying a higher price per square foot.
Here is a quick look at what buyers are seeing right now:
- Santa Cruz Median Home Price: Generally hovering between $1.2M–$1.4M.
- Capitola Median Home Price: Similar range (~$1.2M), but often for smaller square footage.
- Rentals: The rental market is tough in both. Santa Cruz has high demand from students, making it competitive. Capitola rentals are scarce and are often converted into vacation rentals.
Cost of Living: Utilities, Taxes & Daily Expenses
Once you get past the mortgage, the cost of living differences are subtle, but they add up. Groceries and utilities are largely the same since PG&E rates and major grocery chains serve both areas. However, your discretionary spending might look different depending on your zip code.
One specific difference is sales tax. As of early 2026, Santa Cruz City has a slightly higher sales tax (9.75%) compared to Capitola (9.25%). It’s a small percentage, but if you are making major purchases or renovating a home, it’s worth noting.
When it comes to dining and entertainment, Santa Cruz offers more flexibility for your budget. Because of the student population, you can easily find affordable burritos, pizza slices, and happy hours. Capitola dining—especially near the water—leans toward “tourist pricing.” You are paying for that view of the wharf, and while the food is great, it’s rarely a budget option.
Commuting & Transportation
If you are one of the many residents commuting to Silicon Valley, this section is critical. The geography of the commute revolves around one major choke point: the “Fishhook,” where Highway 1 and Highway 17 merge.
Santa Cruz generally wins the commute battle. If you live on the Westside, Scotts Valley, or Pasatiempo areas, you have easier access to Highway 17. You can often hop on the highway and get over the hill to San Jose without getting stuck in the local gridlock first.
Capitola adds a layer of complexity. To get to Highway 17, you usually have to drive north on Highway 1 or navigate surface streets (like Soquel Drive) to bypass traffic. This can add 10–20 minutes to your commute each way during rush hour just to reach the highway entrance.
In terms of getting around town without a car, Capitola is highly walkable, but only within its specific neighborhoods. You can walk from the Jewel Box to the Village easily. Santa Cruz is very bike-friendly, but it is much more spread out; walking from the Westside to the Eastside isn’t really feasible for a quick errand.
Schools & Family Life
Navigating the school districts here can be confusing for newcomers because the boundaries don’t always align with the city limits.
Capitola is largely served by the Soquel Union Elementary School District for grades K-8. This district is often a major draw for buyers because the schools feel smaller and have a strong community reputation. However, for high school, these students generally feed into the Santa Cruz City Schools system (usually Soquel High or Harbor High).
Santa Cruz is served by Santa Cruz City Schools for K-12. This is a larger district with more variety in terms of extracurriculars, sports, and magnet programs.
Both areas offer access to highly rated education, but the “feel” is different. Soquel Union attracts those looking for a smaller, tighter community feel during the elementary years, while the Santa Cruz district offers the resources and diversity of a larger system.
Safety & Neighborhood Feel
When looking at online crime maps, you might see high numbers for Santa Cruz. It is important to read between the lines. Santa Cruz does have higher rates of property crime, such as bike theft and car break-ins. This is largely concentrated in the downtown area, near the Boardwalk, and along the river levee.
Capitola is generally quieter, but it isn’t immune. The Capitola Mall area and the Village can see theft, mostly driven by the high volume of tourists.
For residents in both towns, day-to-day life in the residential neighborhoods feels safe. If you are living in a neighborhood like the Upper Westside in Santa Cruz or the Jewel Box in Capitola, the vibe is peaceful. The “grit” is mostly found in the commercial hubs.
Beaches & Outdoor Recreation
You are moving here for the ocean, right? The beach experience is actually quite different between the two.
Santa Cruz is the rugged, active choice. It boasts world-class surfing at Steamer Lane, miles of hiking trails at Pogonip, and the scenic West Cliff Drive walking path. It’s where you go to be active.
Capitola offers a gentler pace. Capitola Beach is south-facing and tucked into a cove, meaning the waves are usually much smaller. It’s perfect for wading, paddleboarding, or just sitting in the sand. Nearby New Brighton State Beach also offers great camping and wide sandy stretches.
One weather note: Capitola is often stuck in the “sun belt.” It can be foggy and gray on the Westside of Santa Cruz while the sun is shining bright in Capitola.
Verdict: Who Should Live Where?
Deciding between these two really comes down to what you want your Tuesday evening to look like.
Choose Santa Cruz if: You want energy. You want to bike to a brewery, catch live music, have easy access to tough surf breaks, and you don’t mind the grittier aspects of city life. The housing market here offers more variety, and the commute to San Jose is slightly less painful.
Choose Capitola if: You want charm. You prefer a walkable village atmosphere where the barista knows your order. You are looking for a slightly warmer climate, a tighter community feel, and you are okay with tighter housing inventory.
My final tip? Don’t just look at Zillow. Rent an Airbnb in each town for a weekend. The difference in morning coffee vibes will tell you everything you need to know.
Frequently Asked Questions
Is Capitola more expensive than Santa Cruz?
Technically, the median prices are often similar, but Capitola can feel more expensive. Because inventory is so low and lot sizes are smaller, the price per square foot in Capitola is often higher than in Santa Cruz. You generally get a bit less house for your money in the Village.
Which city is better for commuting to San Jose?
Santa Cruz is generally better for the commute. Residents in Santa Cruz (especially near the Fishhook or Scotts Valley) have direct access to Highway 17. Capitola residents often face 15–20 minutes of local traffic just to reach Highway 17.
Does Capitola have its own school district?
Yes and no. Capitola is primarily served by the Soquel Union Elementary School District for grades K-8, which is very popular. However, for high school (9-12), students attend schools within the Santa Cruz City Schools district.
Is Santa Cruz safe to live in?
Yes, most residents feel very safe, especially in residential neighborhoods. The high crime statistics often cited usually refer to property crimes (like bike theft) in commercial and tourist areas downtown. Violent crime remains relatively low compared to major metro areas.
Leave a Reply