Sam Shapiro-Kline is the co-chair of Santa Monica Forward. Image: 711 Colorado via Santa Monica Community Corporation.
For years, Santa Monicans have looked at rising rents as an unavoidable reality, yet the latest data tells a different story. As of April 2026, Santa Monica rents have fallen 8.1% compared to last year. Though likely partially a result of rents spiking after the Palisades Fire, the median rent in our city now stands at $2,328, down nearly $200 from the $2,527 we saw in early 2025 and $2,472 in April 2024. For those of us fighting for a more affordable city at Santa Monica Forward, lower rents aren’t just a statistic. They’re a victory for the movement to build a more inclusive, abundant Santa Monica.
New Homes Are Here
Since the start of 2025, we’ve seen several high-profile projects cross the finish line, adding hundreds of new options for residents:
- 700 Broadway: The eye-catching project at Lincoln and Broadway opened its doors in October 2025, bringing 280 units to the heart of downtown, anchored by a new Vons and Equinox.
- Willow Santa Monica (601 Wilshire Blvd): A 40 unit, luxury development that began leasing in January 2025.
- Berkeley Station: Just last month in March 2026, we celebrated the ribbon-cutting of this 13-unit modular affordable housing project, a testament to how innovation can house our most vulnerable neighbors faster.
Meanwhile, four new buildings have just begun leasing across downtown:
- 1430 Lincoln: This project brings 97 units online, revitalizing the Lincoln Corridor.
- 1650 Lincoln: 98 new homes.
- 501 Broadway: 89 new homes.
- 711 Colorado: This senior affordable housing development delivers 57 homes. These units are funded as part of the development of the other 3 projects recently opened.
In total, these buildings constitute a lot of supply hitting the market in a short period of time. As they look for new tenants, these new homes will put pressure on other landlords and make it difficult for them to increase rents.
Does “Luxury” matter?
Critics often look at the rents in buildings like 700 Broadway and ask, “How does a $4,000-a-month studio help a teacher or a service worker?” The answer lies in a process economists call filtering. When we don’t build new housing, high-income earners don’t just disappear; they outbid everyone else for older, comparatively affordable apartments. By building new “luxury” units, we reduce the demand for all the existing homes in town.
Research by Evan Mast (2019) and others has shown that new market-rate construction creates “moving chains.” As affluent renters move into the shiny new buildings on Broadway, they leave behind older apartments or avoid bidding up the rents on them. This increased vacancy forces landlords of older buildings to compete for tenants, eventually leading to the rent reductions we are seeing across the city today.
Still, in a city with approximately 40,000 homes, a few hundred new homes is likely to have only a limited effect on prices – one that may be overshadowed by regional & global events like the Palisades Fire or war in Iran.
The Path Forward
While more homes and lower prices is a positive early sign, we cannot afford to stop now. The $200 drop in media rent helps lots of people looking for apartments or facing renewals, but we are still digging ourselves out of a decades-long hole. Santa Monica’s city council has been leading on improving affordability by leaning into programs that get more homes built, like the Off-Site Affordable Housing Pilot Program approved in 2025.
Championed by Mayor Caroline Torosis, this innovative policy allows for projects like the one at 1902 Wilshire, which broke ground in February 2026. While 1902 Wilshire will bring 140 new market-rate units to a prominent corner, its affordable housing requirement is being satisfied by a dedicated project at 1333 Seventh St. This “decoupled” approach allows for more efficient financing and ensures that requirements for affordable units don’t get in the way of building more homes.
With other major projects moving through the pipeline like 2716 Ocean Park Boulevard and 1655 26th Street, Santa Monica is finally behaving like a city that wants families, young people, and workers to live here.
The data is clear: when we build, rents stabilize and can even go down. Let’s keep building a Santa Monica where everyone has a place to call home.
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