Scotts Valley, CA

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Scotts Valley short-term rental market based on reliable data.

Listings

10 / 24

Reliable / Active

Cap Rate

3%

Middle-Earners Gross Yield

Revenue

$31,842

Middle-Earners Revenue

Occupancy

91%

Middle-Earners Occupancy

Home Value

$1,262,486

Median Home Sale Price

Top Earners

$54,657

Top-Earners Revenue

Scotts Valley

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Scotts Valley.

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D

Unfriendly to Investors

Scotts Valley Regulations

Scotts Valley bans short-term rentals citywide under its zoning code, making legal STR investment infeasible. The lack of permitted STR uses, combined with conflicting sources and the need to verify status with city officials, creates a high compliance risk that deters investors.

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About Scotts Valley

Scotts Valley sits in Santa Cruz County, California, tucked into the redwood-clad foothills of the Santa Cruz Mountains a few miles inland from the Pacific coast. The small city has a population of roughly 12,000 and carries a quiet, suburban character defined by tree-shaded neighborhoods, family-owned restaurants, and a pace that feels noticeably calmer than the nearby coast. It functions as a natural gateway to two very different California experiences: the beaches and boardwalk of Santa Cruz to the south, and the old-growth redwood forests of the Santa Cruz Mountains to the north and west. Scotts Valley lies approximately 30 miles south of San Jose and roughly 70 miles south of San Francisco, making it an easy detour for travelers looping through the Bay Area or heading down toward Monterey.

Just a few minutes west of town, Henry Cowell Redwoods State Park protects one of the most accessible old-growth redwood groves in the region. Visitors can wander the Redwood Trail loop beneath trees that rise well over 250 feet, then follow the San Lorenzo River on adjacent paths. The park's main entrance off Highway 9 in Felton is roughly a 10-minute drive from most of Scotts Valley, and the area is also home to the Roaring Camp Railroads, where historic steam and diesel trains run through the surrounding forest.

A bit farther into the mountains, Big Basin Redwoods State Park holds the distinction of being California's oldest state park, established in 1902. Its stands of ancient coast redwoods, including the famous Mother and Father Trees, draw hikers from across the region looking for a deeper forest experience. From Scotts Valley, the drive northwest along Highway 9 takes roughly 30 to 40 minutes, winding through redwood canyons along the way.

About 10 to 15 minutes south, the city of Santa Cruz offers the closest stretch of ocean, anchored by the Santa Cruz Beach Boardwalk and its long sandy main beach. The adjacent downtown mixes surf shops, bookstores, and a lively Pacific Avenue dining scene, while the Westside adds a more laid-back, coffee-shop feel. Capitola, with its colorful village-by-the-sea setting, sits just east of Santa Cruz and is another easy coastal stop within a 15-minute drive.

Scotts Valley appeals as a short-term rental base largely because it sits between two of Northern California's strongest draws without being saturated by either. Guests get the calm of a mountain town, the redwoods at their doorstep, and a short drive to the Pacific surf scene, all while remaining within an easy commute of the Bay Area's major airports and cities. That blend of accessibility, year-round mild weather, and surrounding natural variety gives the area a steady, diverse traveler base throughout the seasons.

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