Montecito’s Real Estate Market Is Surging—but It’s Not the ‘Meghan Effect’

Montecito, CA, a charming enclave of fewer than 10,000 residents tucked between the Santa Ynez Mountains and the Pacific Ocean, has experienced a real estate boom in recent years—but local industry experts say celebrity presence is not the town’s main selling point.  

Despite its modest size and out-of-the-way location in a quiet corner of Santa Barbara County, Montecito has become a household name after Prince Harry and Meghan Markle snapped up a $14.65 million mansion in town in 2020 following their sensational departure from the U.K. 

Montecito’s fame reached new heights earlier this year, fueled in part by the premiere of the Duchess of Sussex’s lifestyle docuseries, “With Love, Meghan,” on Netflix, which was followed by a flurry of interviews and social media posts offering intimate glimpses into her family life.

Although the Netflix show has been widely panned by critics, it has helped boost Montecito’s national profile. 

“The show has certainly been a positive effect for the area,” says Dina Landi, managing partner at Riskin Partners Estate Group, a Montecito-based real estate agency, in an interview with Realtor.com®.

But according to Landi, Montecito’s allure extends well beyond the upscale community’s roster of A-list residents like the Sussexes, Oprah Winfrey, and Gwyneth Paltrow.

“Quality of life, I think, is No. 1,” says Landi. “Celebrities tend to get headlines, but it’s quality of life that brings people here.”

Since 2019, before the Duke and Duchess of Sussex settled into their palatial nine-bedroom, 16-bathroom home to raise their two children, prices in Montecito have surged a staggering 75%, from $4.9 million in May of that year to $8.6 million in May 2025, according to the latest available data from Realtor.com.

In nearby Santa Barbara, CA, home prices similarly jumped more than 78% over the past six years, from $1.8 million in May 2019 to $3.2 million last month.

“Though these markets have seen similar price growth, Montecito is more than twice as expensive as Santa Barbara, making Montecito’s substantial price growth rather impressive,” says Realtor.com senior economic research analyst Hannah Jones.

Jones notes that luxury markets like Montecito have gained popularity since the pre-pandemic era as ultrawealthy buyers rushed to invest in the star-studded town’s real estate.

“Despite being twice as expensive, Montecito price growth kept pace with overall Santa Barbara price growth, suggesting that high home prices did not slow down buyers in the area,” adds the analyst. “Montecito may be increasingly appealing to high-earning buyers as it has become more well-known due to the area’s celebrity presence.”

Landi confirms that Montecito has seen an influx of high net worth buyers from other parts of California, including Los Angeles and San Francisco, as well as from farther afield metros such as Chicago, New York City, Miami, and Dallas—all flocking to the area in search of privacy, natural beauty, and a more relaxed quality of life.

During the first five months of 2025, Montecito saw a 31% spike in closings compared with the same period a year ago, reflecting continued buyer confidence.

In January alone, 25 properties were sold in Montecito—something that real estate agent Mark Ashton Hunt, with Village Properties, said was “unheard of” within a single month, especially in the dead of winter.

Hunt detailed the unusual surge in closings in a February column published by the Montecito Journal, in which he wrote that six of the Montecito properties were sold for more than $10 million, among them four that went for $20 million or higher.

Hunt previously told Realtor.com that, based on his records, in January 2024, there were just 12 closings, and no homes over $10 million were sold.

According to Landi, during the COVID-19 pandemic, Montecito became the epicenter of a “buying frenzy,” which has consumed a major share of the town’s already scarce inventory.

The frenzy has since cooled somewhat, but Landi says the local housing market remains “very strong” thanks to Montecito’s enduring appeal—from the town’s walkability, traffic-free roads, and clean air, to its high-quality schools and renowned restaurants.

“There’s still a very long line of buyers that want to get into this market,” she notes.

Given Montecito’s location between the mountains and the ocean, there is very little vacant land that could be developed, so the vast majority of the listings are existing homes—and that is what most buyers want.

“Ninety percent of buyers in today’s market would prefer something that is turnkey that they don’t have to do any work to,” says Landi. “And if something is priced well and is turnkey, it will sell very quickly.”

According to the real estate agent, house hunters in Montecito tend to favor recently renovated, move-in ready homes sitting on a flat parcel of land and featuring a pool. Another must-have for many of Landi’s clients is privacy.

“They’re looking for a private, quiet, tranquil place to call home,” she adds.

Looking ahead, Landi projects a stable growth in sales, driven by a combination of elevated demand and low supply due to the town’s tight inventory, with many owners opting to stay in their homes longer because of their existing below-market interest rates.

“I don’t see the demand waning in any way, shape, or form,” she predicts.