A stunning coastal California enclave battling a homelessness crisis and skyrocketing rents has been named the worst small city in America.
Isla Vista is located less than 15 miles from Santa Barbara and is home to UC Santa Barbara, which has nearly 25,000 students.
Despite the university’s appeal, the small town with a population of only 14,000 ranked last among 1,318 cities in a recent survey conducted by WalletHub.
The California city scored extremely low on affordability and economic health, with high poverty rates.
Even though 47.4 percent of Isla Vista residents rent their home, the community has seen monthly rents skyrocket in recent years, and many locals feel priced out, according to statistics provided by Best Neighborhood.
Isla Vista is located less than 15 miles from Santa Barbara and is home to UC Santa Barbara, which educates nearly 25,000 students.
The California city ranks low in affordability, economic health, and has high poverty rates.
The average rent for an apartment, including one-, two- and three-bedroom units, was $3,384 in July 2024, according to Rent Cafeteria.
This is more than double the national average, and even higher than in notoriously expensive San Francisco, where the typical rent is $3,323.
In 2022, the median rent for a two-bedroom unit was a staggering $5,750, which is $300 more expensive than Montecito, the hometown of Prince Harry and Meghan Markle, and the highest among all communities. that surround Isla Vista.
Those who want to buy in the area face even more discouraging prices.
As of September 2024, the median listing price for a home in Isla Vista was $3.1 million, according to Realtor.com.
High costs are particularly impacting cash-strapped students struggling to find affordable housing, with a limited number of units available on campus and a hot real estate market in the main city, according to daily nexus.
“There is just not enough housing and the timeline is really difficult,” Isla Vista Tenants Union SBCC Relations President Matthew Mucha told the Daily Nexus.
Another pressure on the city is its homeless population, which the county has poured millions of dollars into in an attempt to address.
In June 2021, Santa Barbara County shelled out $6.3 million to purchase a former sorority house right on the border of Isla Vista and neighboring Goleta with the goal of converting it into a homeless shelter.
In the fall of 2023, a Super 8 motel also became a permanent homeless shelter for 60 people.
“Historically, the county uses IV as a landfill for projects no one else wants,” wrote local UC Santa Barbara professor Peter Neushal in an op-ed for The Santa Barbara Independent over the overdeveloped area.
“There are limits to the use of Isla Vista to mitigate the county’s social deficiencies,” he added in his article.
In the fall of 2023, a Super 8 motel was converted into a permanent homeless shelter for 60 people.
Isla Vista, California, just north of Santa Barbara, was ranked the worst small city in America.
In June 2021, Santa Barbara County shelled out $6.3 million to purchase a former sorority house right on the border of Isla Vista and neighboring Goleta and convert it into a homeless shelter.
In addition to costly shelters, a previous effort to provide tiny houses to the homeless population raised concerns about the safety of residents.
After being built in December 2020, the tiny houses, which provide shelter for up to 20 people, attracted even more homeless people to the area.
“Some people who close at night are afraid to close at night,” said local Luis Mejía Ojeda, who worked at Amazon in front of the small houses. The channels in March 2021.
Co-worker Emily Stegeil, who also attended UC Santa Barbara, echoed Ojeda’s concerns, saying that overall security in the area “has gotten substantially worse.”
While overall crime in Isla Vista decreased from 2022 to 2023, violent crime incidents increased from 35 in 2022 to 37 in 2023, an increase of approximately 5.7 percent, according to the Santa Barbara County Sheriff’s Office.
In addition, aggravated assaults increased from 20 in 2022 to 26 in 2023.
“Historically, the county uses IV as a landfill for projects no one else wants,” wrote local UC Santa Barbara professor Peter Neushal.
Other efforts to curb homelessness have met with local resistance.
A 2021 effort to close a homeless encampment set up in the middle of Isla Vista’s People’s Park drew protesters instead of support.
Those living in the park were given a 10-day notice to vacate, angering some locals.
There is also growing concern about parking in the city.
Developers in Isla Vista have proposed building eight- and three-story buildings downtown in recent years, but none will have parking areas.
The city’s parking, which is already at 6 percent capacity, is also expected to get even worse when the metro is forced to implement the state’s new red curb requirement for crosswalks, according to the outlet.
The new law prohibits drivers from parking within 20 feet of a crosswalk, further limiting the number of parking spaces in the city.
Isla Vista had some of the worst affordability and economic health scores, with a high percentage of the population in poverty, and has some of the lowest homeownership rates.
After being built in December 2020, the Isla Vista tiny houses, which provide shelter for up to 20 people, attracted even more homeless people to the area.
Isla Vista wasn’t the only California city to rank first on the worst cities list; Wasco, northeast of Bakersfield, was rated third worst in the country,
The metro was listed as more affordable than Isla Vista, but fared worse in safety and quality of life.