Decoding the Relationship Between Home Age and Market Value

Decoding the Relationship Between Home Age and Market Value

  • MEGAN WHALEN
  • June 10, 2025

In Santa Monica, any building 40 years or older is subject to Landmarks Commission review before demolition, under an ordinance the city has enforced since 1976. Meanwhile, any home built new since January 1, 2020 was required by California's Title 24 code to include solar panels. Where a property falls on that timeline affects both what it costs to bring up to modern standards and what protections or restrictions apply if you want to alter or remove it.

Home Age Factor

What It Means in Santa Monica

40+ years old

Subject to Landmarks Commission review before demolition (Santa Monica ordinance, adopted 1976)

Built before Jan. 1, 2020

Not required to have solar PV — retrofitting is a buyer/seller decision, not a code mandate

Built on or after Jan. 1, 2020

Required under Title 24 to include a solar PV system sized to the home's floor area and climate zone

In a designated Historic District

Exterior changes require a Certificate of Appropriateness; interior changes generally do not

Lot in a high-demand area (e.g. North of Montana, Sunset Park)

Land value can outweigh structure age, since limited available land drives up per-lot value regardless of the home's condition

  • Santa Monica Landmarks Commission: meets 2nd Monday of each month, 7:00 PM, City Council Chambers, 1685 Main Street
  • Examples of designated Historic Districts: Third Street Historic District, Bay Street Craftsman Cluster, San Vicente Boulevard Courtyard Apartments Historic District

When evaluating a home's market value, age is one of the most influential factors buyers and sellers weigh. Santa Monica's housing stock ranges from early-1900s beach bungalows to homes built under today's solar-mandated building code, and the relationship between age and value here isn't linear, it depends on condition, location, architectural style, and whether the property carries any historic designation.

How Age Influences Market Perception

Newer homes, generally those built within the last 10-15 years, tend to read as move-in ready: modern electrical systems, updated windows, and floor plans built around current lifestyle expectations. Buyers looking for minimal maintenance often gravitate here.

Older homes, 50+ years old, more often carry architectural detail and craftsmanship that's expensive or impossible to replicate today. Some buyers will pay a premium for that character, especially when the home has been well-maintained or thoughtfully updated rather than left original.

Maintenance, Renovation, and Landmark Review

Older homes are more likely to need near-term investment in plumbing, roofing, HVAC, or foundation work, and buyers often price that in during negotiations after inspection.

There's an added wrinkle specific to Santa Monica: any structure 40 years or older is subject to Landmarks Commission review before it can be demolished, under the city's Landmarks and Historic District Ordinance, in place since 1976. That doesn't block a sale or renovation, but it does mean a teardown plan for an older property should account for that review step, not assume it's a formality.

Energy Efficiency and the Title 24 Solar Requirement

Since January 1, 2020, California's Title 24 energy code has required new single-family homes and low-rise multifamily buildings to include a solar PV system sized to the home's floor area and climate zone. That requirement applies to new construction, not existing homes, which means anything built before 2020 doesn't have solar baked into its original construction and retrofitting is a separate cost a buyer or seller can weigh.

This creates a real, dateable line in the market: homes built from 2020 onward come with a documented energy feature older homes generally don't have unless it was added later.

Location and Lot Value

In much of Santa Monica, the age of the structure matters less than the value of the land underneath it. With limited available land and steady demand, an older home's lot value alone can be significant, especially in sought-after areas like North of Montana, Ocean Park, or Sunset Park, where buyers may plan a remodel or rebuild regardless of the existing structure's condition.

Sellers of older homes in these areas should understand not just the home's age, but how lot size, zoning, and any historic designation affect what a buyer can actually do with the property.

Not Sure Where Your Home's Age Puts You?

Whether your home is a 1920s original or built under the current solar code, that specific timeline affects your options and your value.

Get your home's valueTalk to Megan about your property

Buyer Preferences and Market Trends

Generational shifts affect how age reads to buyers. Many Millennial and Gen Z buyers prioritize turnkey, low-maintenance homes with smart technology and open layouts, and may see less value in a home needing updates, even a larger or more architecturally distinct one.

At the same time, there's steady demand for mid-century modern and California Craftsman homes that have retained their historical integrity, particularly ones formally recognized in one of Santa Monica's designated Historic Districts.

Appreciation Potential and Investment Outlook

New homes often carry a price premium, but thoughtfully renovated older homes can outperform on long-term appreciation, particularly when they blend original character with updated systems. In a market with limited inventory like Santa Monica, buyers with a long-term view sometimes see more upside in an aging home in a strong location than in a newer one further from the core.

Making an Informed Decision

Age is one input in a larger value equation that includes condition, location, architectural style, renovation quality, and any historic designation. A newer home offers ease and (since 2020) built-in solar; an older one may offer character, land value, and renovation upside, with a Landmarks Commission review to account for if demolition is on the table.

For guidance on how a specific property's age and history affect its value, reach out to Megan Whalen, who works with Santa Monica buyers and sellers on exactly these trade-offs.

Frequently Asked Questions

At what age does a Santa Monica home need Landmarks review to demolish?

Any structure 40 years or older in Santa Monica is subject to Landmarks Commission review before demolition, under the city's Landmarks and Historic District Ordinance, adopted in 1976.

Do older homes in Santa Monica need solar panels?

No. California's Title 24 solar requirement only applies to homes built new on or after January 1, 2020. Existing homes are not required to add solar solely because of that mandate.

Does an old home's condition matter more than its lot in Santa Monica?

Often the lot matters more. With limited available land, older homes in high-demand areas like North of Montana, Ocean Park, and Sunset Park can carry significant value based on location alone, independent of the existing structure's condition.

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