Santa Cruz County homeowners embraced backyard cottages after state and local reforms made accessory dwelling units, or ADUs, far easier to build, but that boom is already fading. Rising construction costs, high interest rates and other economic headwinds have sharply slowed new ADU projects, making it harder for the county to meet its housing goals.
Dieter Holger
Dieter Holger is a journalist contributing stories to Lookout Santa Cruz, with a focus on money, energy and the economy. You can reach him at dieterholger.reports@gmail.com.
See which Santa Cruz County communities backed Becerra, Steyer and Hilton
Santa Cruz County’s gubernatorial primary results revealed a clear demographic divide: Tom Steyer performed best in whiter, more college-educated communities, while Xavier Becerra drew strong support from Latino-majority areas such as Watsonville, helping propel him into the November run-off against Republican Steve Hilton.
Santa Cruz’s population decline has widened. Low-wage jobs and high housing costs are reasons why.
The city of Santa Cruz has lost 1.3% of its population since 2024 and 3.7% since 2020, a Lookout analysis of the latest estimates from the U.S. Census Bureau finds. The decline is part of a broader exodus from expensive places in California where people struggle to land high-paying jobs.
Santa Cruz County farmers raise prices due to soaring diesel, fertilizer costs
The closure of the Strait of Hormuz, a crucial waterway for shipping energy in the Persian Gulf, has sent the prices of diesel and petroleum-based fertilizer – key farming resources – soaring globally. Now, the supply crunch is coming home to roost in agrarian communities like Santa Cruz County.
How Santa Cruz County cannabis businesses will benefit from recent reclassification of medical marijuana
After the Department of Justice eased medical marijuana’s legal status, full reclassification could come as early as this year – a move industry participants say would help level the playing field for cannabis businesses by lowering taxes and fostering financing and trade opportunities.
It’s Tax Day: Here’s why some Santa Cruz County homeowners are saving more this year
This year, some Santa Cruz homeowners were able to save thousands of dollars when filing taxes. That’s due to an increased cap on state and local tax deduction referred to as SALT.
A year after Moss Landing fire, proponents of new battery storage plant outside Watsonville say it would be safer; residents are skeptical
Residents who live in the area outside Watsonville where a battery storage plant is proposed are arguing against the facility on safety grounds. The company proposing it, however, insists that new technology is safer and more reliable.
Deep-pocketed investors account for a third of home purchases in Santa Cruz County
Since 2021, investors have spent nearly $1.45 billion on purchases of single-family homes in Santa Cruz County, accounting for around 44% of total sales value.
Record two in five homes sold for cash in Santa Cruz County in 2023
High interest rates and a declining number of houses for sale helped send the share of homes selling for all cash to record levels in 2023. Homebuyers flush with cash are reaping benefits that are often out of reach for most prospective buyers who need a mortgage.
An early adopter of electric vehicles, Santa Cruz is falling behind, challenging California’s EV ambitions
Santa Cruz County is falling behind in the adoption of electric vehicles compared to other parts of the state. Higher prices are putting many consumers off, local auto dealers say. Lower-income areas of the county in particular are struggling to afford the upfront costs of an electric car despite thousands of dollars in government rebates and fuel savings.

