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The stunning California coastal enclave named Americas worst small city

A stunning coastal enclave in California that is battling a homelessness crisis and soaring rents has been named the worst small city in America.

A stunning coastal enclave in California that is battling a homelessness crisis and soaring rents has been named the worst small city in America. 

Isla Vista is located less than 15 miles outside of Santa Barbara and is home to UC Santa Barbara, which has nearly 25,000 students. 

Despite the draw of the college, the small town with a population of just 14,000 people was ranked dead last out of 1,318 cities in a recent survey by WalletHub

The California city scored extremely low in affordability and economic health, with high reported rates of poverty.

Despite the fact that 47.4 percent of Isla Vista residents rent their home, the community has seen monthly rents skyrocket in recent years, with many locals feeling priced out, according to stats provided by Best Neighborhood

Isla Vista is located less than 15 miles outside of Santa Barbara and is home to UC Santa Barbara, which educates nearly 25,000 students

Isla Vista is located less than 15 miles outside of 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 rates of poverty

The California city ranks low in affordability, economic health, and has high rates of poverty

The average rent for an apartment - including one, two and three-bedroom units - was $3,384 in July 2024, according to Rent Cafe

This is more than twice 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 in Prince Harry and Meghan Markles hometown of Montecito and the highest among all the communities surrounding Isla Vista.

Those looking to buy in the area face even more daunting prices. 

As of September 2024, the median listing home price in Isla Vista was $3.1 million, according to Realtor.com. 

The high costs are particularly impacting cash-strapped students who are struggling to find affordable accommodation - with a limited number of units available on campus and an intense housing market in the main town, according to Daily Nexus

There’s just not enough housing, and the timeline is really difficult, SBCC Relations Chair of the Isla Vista Tenants Union, Matthew Mucha, told Daily Nexus. 

Another strain on the city is its homeless population, which the county has thrown millions of dollars at in an attempt to fix.

In June 2021, Santa Barbara County shelled out $6.3 million to buy a former sorority house right on the border of Isla Vista and neighboring Goleta with the aim of turning it into a homeless shelter. 

In fall of 2023, a Super 8 motel was also converted into a permanent homeless shelter for 60 people.

Historically, the county uses I.V. as a dumping ground for projects nobody else wants, wrote local UC Santa Barbara professor Peter Neushal in an op-ed for The Santa Barbara Independent about the area being overdeveloped.

There are limits to using Isla Vista to assuage the county’s social shortcomings, he added in his piece. 

In fall of 2023, a Super 8 motel was converted into a permanent homeless shelter for 60 people

In 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 town in America

Isla Vista, California, just north of Santa Barbara, was ranked the worst small town in America

In June 2021, Santa Barbara County shelled out $6.3 million to buy a former sorority house right on the border of Isla Vista and neighboring Goleta and turn it into a homeless shelter

In June 2021, Santa Barbara County shelled out $6.3 million to buy a former sorority house right on the border of Isla Vista and neighboring Goleta and turn it into a homeless shelter

In addition to costly shelters, a previous effort to provide the homeless population with tiny homes raised concerns about the safety of residents. 

After being built in December 2020, the tiny homes, which provide shelter for up to 20 people, attracted even more homeless to the area.

Some people who close at night are afraid to close at night, local Luis Mejia Ojeda, who worked at Amazon across the street from the tiny homes, told The Channels in March 2021. 

His coworker Emily Stegeil, who also attended UC Santa Barbara, echoed Ojedas concerns and said that overall, safety in the area got substantially worse.

While crime overall in Isla Vista went down from 2022 to 2023, violent crime incidents went from 35 in 2022 to 37 in 2023, an increase of about 5.7 percent, according to the Santa Barbara County Sheriffs Office

On top of that, aggravated assaults went from 20 in 2022 to 26 in 2023.

Historically, the county uses I.V. as a dumping ground for projects nobody else wants, wrote local UC Santa Barbara professor Peter Neushal

Historically, the county uses I.V. as a dumping ground for projects nobody else wants, wrote local UC Santa Barbara professor Peter Neushal

Other efforts to curb homelessness have been met with local resistance. 

An initiative in 2021 to shut down a homeless camp set up in the middle of Isla Vistas Peoples Park brought protestors instead of support.

Those living in the park were given 10-days notice to vacate, which angered some locals.  

There are also growing concerns about parking in the town.  

Developers in Isla Vista have proposed building eight and three-story buildings in the downtown area in recent years, but none will have parking areas. 

The citys parking, which is already at 6 percent over capacity, is also expected to get even worse when the metro is forced to implement the states new red curb requirement for crosswalks, according to the outlet. 

The new law prohibits drivers from parking within 20 feet of crosswalk, further limiting the number of places to park 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

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, Isla Vistas tiny homes, which provide shelter for up to 20 people, attracted even more homeless to the area

After being built in December 2020, Isla Vistas tiny homes, which provide shelter for up to 20 people, attracted even more homeless to the area

Isla Vista was not the only California city to earn a top spot on the worst city list; Wasco, northeast of Bakersfield, was dubbed third worst in the country,

The metro was listed as being more affordable than Isla Vista, but faired worse in safety and quality of life.


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