Carmel-by-the-Sea condos and apartments for sale: why they are rare and what to check
Most of Carmel-by-the-Sea is single-family homes, so a condo near Ocean Avenue is a small and unusual slice of the market. Here is where condos can exist under the city code, why so few new ones appear, and what to read before you buy one. Rules checked Nov 9, 2026.
The short version: Condos are scarce in Carmel-by-the-Sea. Census estimates (ACS 2020 to 2024) count about 3,442 housing units in town, and about 3,084 of them are detached single-family homes. Multifamily buildings are limited to the R-4 district and the commercial districts around downtown. City code limits new condominium subdivisions to sites of 4,000 square feet or less, or projects with at least as many rental apartments, and the Housing Element keeps the policy that apartments cannot be converted to condos unless a new apartment replaces them. Short-term rentals under 30 days are allowed only with a legal nonconforming or housing incentive permit. Before you buy, read the HOA documents California requires the seller to provide.
Detached single-family
Of about 3,442 housing units (ACS 2020 to 2024 estimate).
Condo site limit
Unless the project includes as many rental apartments.
R-4 height in stories
Per CMC 17.12.020.
Short-term rental line
Under 30 days needs a specific city permit.
A town of houses, by design
The housing stock tells the story.
The numbers
The Census Bureau’s American Community Survey (2020 to 2024 five-year estimates) counts about 3,442 housing units in Carmel-by-the-Sea. About 3,084 are detached single-family homes. Buildings with two or more units add up to only about 300, and the margins of error on those small counts are wide.
Second homes
About 1,542 units are counted as vacant for seasonal, recreational or occasional use, which means many owners live here part of the year. That is one reason lock-and-leave condos draw interest when they come up.
Policy keeps it that way
The city’s 2023 to 2031 Housing Element continues the condominium conversion policy: apartments cannot be converted to condominiums unless a new apartment is created to offset the conversion. The goal is to keep rental housing in town.
Where the market data stops
My Carmel-by-the-Sea market stats track single-family homes only, so there is no condo median price here. If you want recent condo sales, ask me and I will pull them for the specific building.
Census Reporter: Carmel-by-the-Sea (ACS 2024 5-year) City Housing Element programs (PDF)
R-4 and the commercial districts
Condos and apartments sit in and around the downtown core, not in the residential (R-1) neighborhoods.
R-4 multifamily district
The R-4 district allows apartments and condominiums. Buildings are limited to two stories, base density is 33 units per acre (up to 44 with a density bonus), and building sites run from 4,000 to 20,000 square feet. Required parking for dwellings must be on site (CMC 17.12.020).
Commercial districts (CC, SC, RC)
Residences are allowed in the Central Commercial, Service Commercial and Residential and Limited Commercial districts, typically above shops. The code says residential uses are appropriate on the second floor in the CC district, and new second-story floor area in commercial districts must be residential.
Street-front first floors
In the CC district, no new residential units are allowed on the first story where they would front directly on a public street, unless the building was originally a single-family home (CMC 17.14.040.N).
Older buildings
Some buildings have more units than today’s rules allow. R-4 residential buildings lawfully established before March 7, 1990 may be rebuilt at the same density with a design that meets current standards (CMC 17.12.030).
CMC Ch. 17.12, R-4 district CMC Ch. 17.14, commercial districts
City rules a condo buyer should know
These shape what exists today and what could be built or changed.
New condo projects
Condominium subdivisions are limited to sites of 4,000 square feet or less, or to projects that include an equal or greater number of rental apartments (CMC 17.14.040.N). In R-4, sites over 4,000 square feet must provide at least half their units as rental apartments.
Unit sizes
The minimum residential unit is 400 square feet. In projects with three or more units, at least a quarter of the units must be 400 to 650 square feet. In two-unit projects, the smaller unit must be at least 40% of the size of the larger one.
No loss of housing
No existing dwelling unit in a commercial district may be converted or demolished unless replacement housing is provided, and an upper-floor dwelling may not be converted to commercial use (CMC 17.14.050).
Design review and permits
Exterior changes still go through city design review. See Carmel-by-the-Sea building permits.
Can you rent a Carmel-by-the-Sea condo?
Long-term yes, short-term only with a specific permit.
Under 30 days
The city defines a transient rental as a stay of less than 30 consecutive days for a fee. Short-term rentals are prohibited in the R-1 district. In the commercial and R-4 districts the city issues two kinds of permits: legal nonconforming permits issued before the ordinance, which run with the land and transfer on sale, and housing incentive permits tied to creating new rental housing.
If a listing says it has a permit
Confirm the permit with the city for that exact unit. A legal nonconforming permit stays at its original location and cannot move to another unit.
HOA rules can be stricter
Even where the city allows a rental, the building’s CC&Rs may limit or prohibit it. California requires the seller to disclose any rental prohibition in the governing documents.
More detail
Full city rules: Carmel-by-the-Sea short-term rental rules.
What the seller must give you
California Civil Code section 4525 lists the documents a condo seller provides to a buyer.
Governing documents
The CC&Rs, bylaws and rules, plus a statement if the association is not incorporated.
Money
A written statement from the association of current regular and special assessments, unpaid assessments, fines and late charges, plus any approved increases not yet due.
Budget and reserves
The most recent annual budget and reserve materials the association distributes to owners.
Rental and age limits
A statement describing any rental prohibition, and the required statement on any age restriction.
Problems
Notices of unresolved violations, any construction defect list, board minutes for the past 12 months if you ask, and the most recent balcony and deck inspection report where one applies.
Read them early
Small Carmel-by-the-Sea associations may have few owners sharing big costs, like a roof or exterior repairs. Read the budget, reserve study and minutes before you remove contingencies.
Watching for a Carmel-by-the-Sea condo?
Condos in town come up rarely, so it pays to know which buildings exist, what their HOAs look like and which units have rental permits before one is listed. I represented the buyers of San Antonio 2 SW of 10th ($7M) and Lincoln 3 NE of 5th ($4.4M), and both sides of Torres 2 SE of 10th ($5.54M).
Start with a 30-minute call.
Buying in Carmel-by-the-SeaCarmel-by-the-Sea homesCarmel-by-the-Sea market stats
Want me to watch a building?
Call or text 831-747-0310, or book a 30-minute call.
Before you rely on this
- Housing counts are American Community Survey 2020 to 2024 five-year estimates (via Census Reporter), with wide margins for small categories. Zoning rules are from the Carmel-by-the-Sea Municipal Code on eCode360 (Chapters 17.12 and 17.14), the city’s transient rental page and Housing Element programs, checked Nov 9, 2026. The eCode360 page notes Ordinance 2023-007 amends zoning pending Coastal Commission certification.
- HOA document rules are from California Civil Code 4525 as amended effective Jan 1, 2026.
- No condo prices are given: my stats pages cover single-family homes only.
Carmel-by-the-Sea condos: quick questions
Are there condos in Carmel-by-the-Sea?
Yes, but few. Census estimates count about 3,442 housing units in town, and about 3,084 are detached single-family homes. Condos and apartments sit mainly in the R-4 and commercial districts around downtown.
Why are new condos so rare in Carmel-by-the-Sea?
City code limits condominium subdivisions to sites of 4,000 square feet or less, or to projects with at least as many rental apartments, and the city keeps a policy that apartments cannot be converted to condos unless a replacement apartment is created.
Can I rent my Carmel-by-the-Sea condo on Airbnb?
Only if the unit has a city transient rental permit. Stays under 30 days are prohibited in R-1, and in commercial and R-4 districts they need a legal nonconforming or housing incentive permit. The HOA may also restrict rentals.
What is the smallest condo allowed in Carmel-by-the-Sea?
City code sets a 400-square-foot minimum for residential units in multifamily projects.
What HOA documents should I get?
Under Civil Code 4525 the seller provides the governing documents, an assessment statement, budget and reserve materials, any rental prohibition, unresolved violation notices and, if you ask, 12 months of board minutes, among others.
Is there a Carmel-by-the-Sea condo median price?
Not on this site. My Carmel-by-the-Sea stats cover single-family homes, so I pull condo comparables building by building on request.
Updated November 2026 · Facts checked Nov 9, 2026 against the Carmel-by-the-Sea Municipal Code, City of Carmel-by-the-Sea, U.S. Census Bureau ACS and California Civil Code
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