Carmel Highlands Luxury Homes for Sale: on the open ocean.
The Carmel Highlands is a small, quiet coastal community just south of Carmel-by-the-Sea, where the Monterey Peninsula gives way to the Big Sur coast. Point Lobos is right next door, and in my opinion it’s probably the most dynamic of all the areas on the Monterey Peninsula.
If you’re browsing Carmel Highlands homes for sale, this page is what I’d tell a friend first: where you can live out here, from right on the water to way up the mountain, what’s different about buying on this stretch of coast, and how I can help.
Why buyers love the Carmel Highlands
The Highlands sits along Highway 1 south of the Carmel River, in unincorporated Monterey County. It feels secluded and a little wild, yet Carmel-by-the-Sea, Pebble Beach, and Monterey are all an easy drive away.
- Open oceanThis is open ocean, not the protected water of Carmel Bay. Many homes look straight out over the Pacific, and the coastline changes with every swell.
- Point Lobos next doorPoint Lobos State Natural Reserve is right next door, with Garrapata State Park a little farther south. Hiking, wildlife, and tide pools are part of everyday life.
- The gateway to Big SurHead south on Highway 1 and you’re on one of the most famous drives in the world. Head north and you’re in Carmel-by-the-Sea in a few minutes.
- A real range of settingsRight on the water, way up the mountain, or tucked into the trees in between. No town center and no crowds, yet you’re not far from everything.
On the water, up the mountain, or in between
The Highlands doesn’t have formal neighborhoods, but it has a real range of settings. When I show buyers around, I think of it in three ways, and there are lots of options in each.
Along the water
Oceanfront parcels sit right along the coast, and this is open ocean, not protected like Carmel Bay. Watching the swells roll in is part of the magic, and so is the salt air and wind.
Way up high
You can live high on the ridge at the top of Corona Rd, well above the ocean, with sweeping views of the ocean and the mountains. It’s a drive up, and the views are the reward.
In between
Places like Upper Walden Road and Lower Walden Road are tucked into the mountainside among the trees, just off Highway 1. You’re close to the coast and the highway, with more shade and a woodsy, private feel.
Yankee Point & Carmel Riviera
The Carmel Highlands is the most dynamic part of the Peninsula. It sits on the open ocean, unlike the shelter of Carmel Bay, and many homes here are built on granite.
Two beaches, one neighborhood.
Carmel Riviera and Yankee Point make up the most walkable neighborhood in the Carmel Highlands.
Settings range from oceanfront homes, to Upper and Lower Walden in the trees, to high on the ridge at the top of Corona Rd, well above the ocean.
The residents’ beach
Between Yankee Point and Spindrift Road there’s a private beach for residents, reached with a key.
A small public beach
At the south end of the neighborhood is a small public beach. Getting there takes a hike down.
Winter storms hit hardest here. If you’re looking at a home in Yankee Point or Carmel Riviera, we’ll confirm whether it comes with beach key access and how that works.
What to know before buying in the Carmel Highlands
None of this should scare you off. It’s just part of owning a home on a wild, beautiful stretch of open coast, and it’s much easier to plan for up front than to discover in escrow.
Monterey County and the coastal zone
The Highlands isn’t a city, so planning and permits go through Monterey County. It’s also in the coastal zone, under the county’s Carmel Area Land Use Plan, and near the shoreline some projects can be appealed to the California Coastal Commission. Guest houses and second units can come with their own limits here, too.
My advice: if you’re planning to remodel, add on, or build, let’s talk to a local architect or land-use consultant before you’re locked in.
Where does the water come from?
Many homes in the Highlands are on Cal Am water, but some rely on a private well or a small shared water system, especially farther up the canyons. Water is a real constraint on the Monterey Peninsula, and adding water use can be hard.
My advice: we’ll confirm the water source for every home, and test the well’s flow and quality if there is one.
Septic is common
Much of the Highlands isn’t on a city-style sewer, so many homes have a septic system. On steep or rocky lots, repairing or replacing one can be a real project.
My advice: we’ll get a septic inspection during escrow and ask for any county records on the system.
Fire risk and insurance
Wooded hillsides and canyons are beautiful, and they also mean wildfire risk. Fire protection comes from the Carmel Highlands Fire Protection District, but insurance here can take some shopping, and defensible space matters.
My advice: get insurance quotes during your inspection period, not after, so there are no surprises.
Granite, steep lots, and Highway 1
Many homes here sit on granite, which in my experience is about as solid as ground gets here when it comes to earthquakes. Hillside lots can still mean retaining walls, drainage work, and soil or slide questions. Highway 1 is the main way in and out, and big storms can close parts of it, more often farther south along the Big Sur coast.
My advice: even on granite, a geology or soils report for the specific lot is still worth it, and it’s smart to know your backup route.
Weather on the open ocean
Winter storms can hit hardest in the Highlands. Unlike Monterey Bay or Carmel Bay, there’s no bay to break down the storm and the wind, so it can be a little rainier and windier during winter storms, and a little more brisk overall. Summer fog is probably similar to the parts of Carmel-by-the-Sea close to the water, and the best weather usually comes from late August through October.
My advice: see a home on a windy day if you can, and look at how it’s sited and built for weather: windows, roof, and drainage.
Rules change, so we’ll confirm current requirements with Monterey County for any home you’re serious about, including short-term rental rules, which are strict and have been changing. The Carmel Highlands is generally served by Carmel Unified School District; confirm school assignments by address with the district.
Seeing Carmel Highlands homes before they hit the market
Homes in the Highlands don’t come up often, so an early look matters. Compass is now part of the same family as Coldwell Banker, Sotheby’s International Realty, Corcoran and more, so I can see coming-soon listings from those brokerages too.
Carmel Highlands home buying FAQ
Where exactly is Carmel Highlands?
Carmel Highlands is a coastal community in unincorporated Monterey County, situated along Highway 1 south of Carmel-by-the-Sea and north of Big Sur. The area spans from oceanside properties at sea level to homes high on the ridge at the top of Corona Rd, well above the ocean, on the mountain side of Highway 1. Point Lobos State Natural Reserve sits at its northern boundary, and the area transitions into the Big Sur coast to the south.
What are Spindrift and Yankee Point in Carmel Highlands?
Spindrift and Yankee Point are oceanside sub-areas within Carmel Highlands, known for homes situated directly on the rocky coastline at the water's edge. These properties offer some of the most dramatic open-ocean living available anywhere on the Monterey Peninsula, with waves breaking on the rocks below and unobstructed views of the Pacific. They are among the most sought-after and highest-priced locations within Carmel Highlands.
Is Carmel Highlands in the California coastal zone?
Yes. The entire Carmel Highlands area is within California's coastal zone. New construction, significant remodeling, and additions require a coastal development permit from Monterey County, and some decisions can be appealed to the California Coastal Commission. Given the sensitive coastal and habitat character of the area, the permitting process can be detailed and time-consuming. Buyers planning to remodel or build should consult with an architect familiar with both Monterey County coastal planning and the Coastal Commission process before removing contingencies.
Is Carmel Highlands inside the town of Carmel-by-the-Sea?
No. Carmel Highlands is in unincorporated Monterey County, outside the town limits of Carmel-by-the-Sea. Permits and planning go through Monterey County rather than the city. Despite carrying a Carmel mailing address and a 93923 ZIP code, Carmel Highlands properties are governed entirely by county rather than city rules.
What is the water supply situation in Carmel Highlands?
Water supply varies by location within Carmel Highlands. Properties in many parts of the area are served by Cal-Am public water. However, on the mountain side of Highway 1, a number of properties rely on a shared well water system rather than public water service. Buyers should confirm the specific water supply for any property they are considering before closing, and should have shared well systems inspected and reviewed carefully, including the well agreement, maintenance history, and condition of the system.
What is it like to live in Carmel Highlands?
Carmel Highlands has a distinct character from the village of Carmel-by-the-Sea. The community is more rural and private, with homes spread across a dramatically varied terrain of rocky coastline, redwood-studded hillside, and open coastal scrub. The Highlands Inn and Tickle Pink Inn are nearby, with Pacific's Edge restaurant at the Highlands Inn offering fine dining with open-ocean views. Point Lobos State Natural Reserve, one of the most protected and beautiful stretches of coastline in California, sits at the northern edge of the community. The area has a long history as a haven for artists, architects, and writers drawn to its uncompromising natural beauty.
What schools serve Carmel Highlands?
Carmel Highlands is served by Carmel Unified School District. School assignments should be confirmed by specific property address directly with Carmel Unified School District.
Have a question that isn’t here? Contact me.
Carmel Highlands homes for sale right now
The live listings are just below. Homes here usually carry a Carmel address, so if one catches your eye, ask me where exactly it sits (on the water, up the mountain, or in between), what the road in is like, and how it handles water, septic, and fire safety.
Curious what’s been selling? See Carmel Highlands sales stats.
Thinking about the Carmel Highlands? Let’s talk it through.
Tell me what you’re picturing, and I’ll tell you honestly what it takes to get there: which part of the Highlands fits, what to check on water, septic, and the lot, and what a fair price looks like. No pitch.
Prefer to text? 831-747-0310 · [email protected]
Selling too? Start with a no-pressure home valuation, and we’ll plan both moves together.
Looking nearby? Explore the Carmel area, Carmel-by-the-Sea, or Carmel Point.
Jonathan Balog, Associate Broker | Compass | DRE# 01980970
Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. License Number 01527235. Information deemed reliable but not guaranteed. The Carmel Highlands is in unincorporated Monterey County; local rules summarized here are general information, not legal advice. Confirm current requirements with Monterey County.