How to Build Your Dream Home in Santa Cruz

There is no doubt about it. Santa Cruz is one of the least affordable counties in the nation. In fact, in 2022, Santa Cruz was noted to be the second least affordable place to live in the entire nation. That’s according to “Out of Reach”, an annual publication of the National Low Income Housing Coalition, which shows the gap in every state between wages and housing costs.

Hi, I’m Shemeika Fox, your Santa Cruz real estate expert and your personalized real estate concierge. Besides the high cost of living in Santa Cruz County, we are still not seeing enough Santa Cruz housing inventory to support the Santa Cruz home buying demand. And as a result, I am frequently asked about other options, such as buying and developing vacant or raw land.

Have you been burnt out on the lack of housing inventory in Santa Cruz County and/or the high prices it cost to buy a Santa Cruz home? Are you considering investing in raw land and building or shipping in a tiny, or prefabbed home?

If so, please make sure you educate yourself on the complexities and expenses of developing in Santa Cruz County. It sounds like a great idea. And in fact for some people, and the right properties, it is a great idea. I mean, when else can you build a custom Santa Cruz home exactly the way you want it?

If this sounds exciting to you, the first step in the process is to choose the lot in which you would like to develop. Why? Every lot in Santa Cruz County is different. Though there may be homes constructed all around the lot you have identified, there could be complexities such as protected habitats, coastal commissions, landslide areas, areas of potential flooding, et cetera, et cetera, designated specifically to the lot in which you are considering for development, not the area.

So if you have identified a lot that excites you, my first recommendation is to hire a land use consultant to help determine the feasibility of the actual build-ability. Something to consider. In my experience, even if you do find out that what you wanna build is possible, based on the information obtained from the land use consultant, you may not be able to obtain a final seal of approval from the county, city, or other appropriate jurisdiction until all plans, drawings, and engineering have actually been submitted, reviewed, and approved.

With that in mind, let’s assume you are prepared to move forward based on the studies provided by the land use planner. The next thing to dig into, yes, pun intended, is the infrastructure. The water, the electricity and gas, the sewer, et cetera. Water is crucial, right? We literally cannot live without it. So how will you get water when developing a vacant parcel of land should be worth careful exploration. Is the property close, or in the jurisdiction of a local water company that you can pipe into? Does the property have a well, or a spring on it? Is there a shared well nearby that you can buy into? These are great questions, and necessary to consider when deciding the feasibility of development in Santa Cruz County. What about electricity and gas? Is there enough sun exposure to install solar and live in an all-electric house? Does PG&E service the area and how close is the nearest PG&E pole? What are the costs of pulling gas and electricity from PG&E to the home you intend to build? Or do you need to get a propane tank? Many rural properties use propane to bring gas to their property. So make sure there is a propane company that you know that you have confirmed that services the area in which you are taking into consideration.

If the lot you are considering is rural, vacant, and under one acre, you cannot install a septic system. If there is already a home on the property, and an old system in place that is considered “grandfathered in”, and the possibility of installing a new system is likely, though you may be required to install an engineered or enhanced septic system, which can be quite expensive, and of course, time consuming. If the lot you are considering is near a sewer main that you can connect to, make sure to contact the appropriate jurisdictions to ensure all questions pertaining to the cost and feasibility are answered.

If all of your questions regarding infrastructure are satisfying and you are still excited to build your Santa Cruz dream home, that is a super exciting place to be. Of course, there are so many other details and things to consider when deciding if you want to take on the project of building a home right here in Santa Cruz.

If you would like additional information, or to discuss further the possibility of building your dream home, or if you would like my recommendations on the right vendors to contact to get the process started and the necessary information about building your Santa Cruz dream home, please feel free to reach out for a complimentary confidential consultation. I’m Shemeika Fox, your Santa Cruz real estate expert, and your personalized real estate concierge, and as always, I’m here to help.