Malibu has always been more than just a place to live—it’s a global symbol of luxury, exclusivity, and lifestyle. For decades, owning property in Malibu has been seen as both a financial investment and a personal statement. But with today’s changing economy, many investors and homeowners are asking a critical question: Is Malibu real estate still worth it in 2025 and beyond?

As Senior Financial Advisor, I’ve worked with clients across different market cycles, helping them decide whether to buy, sell, or hold real estate as part of their larger wealth strategy. Let’s take a deep dive into Malibu’s market, what’s driving it, and how to think about your next move.

Malibu’s Lasting Appeal: Why Investors Keep Coming Back

The Malibu housing market has always been supported by one undeniable fact: scarcity. There’s only so much land along the California coast, and Malibu’s 21 miles of beachfront make it one of the most desirable—and limited—markets in the world.

Even during economic downturns, luxury buyers tend to prioritize lifestyle and exclusivity over short-term price fluctuations. For example:

• 2008 Financial Crisis: While most U.S. housing markets saw dramatic price declines, Malibu’s high-end market recovered more quickly due to ongoing demand from wealthy buyers.
• 2020 Pandemic Shift: When many urban markets stalled, Malibu saw a surge of interest as high-net-worth families sought second homes with space, privacy, and coastal access.

This long-term resilience explains why investors often see Malibu property not just as real estate, but as a hedge against inflation and a store of value.

Headwinds Facing Malibu Real Estate

That said, even a market as strong as Malibu comes with challenges that investors need to weigh carefully:

• Rising interest rates: A $5 million property becomes significantly more expensive to finance when mortgage rates rise from 3% to 7%. For some buyers, that difference is hundreds of thousands of dollars annually.
• Wildfires and insurance: Properties in Malibu face higher insurance premiums due to wildfire risk, sometimes making annual carrying costs a surprise for new owners.
• Liquidity: Luxury homes don’t always sell quickly. If you need access to cash, it may take longer to find the right buyer in Malibu compared to more middle-market areas.

Should You Buy in Malibu Now?

For long-term investors and lifestyle buyers, Malibu continues to be attractive. If you can afford to hold the property for 10–15 years, short-term fluctuations become less important.

Example: A client who purchased a beachfront home in 2012 for $6 million recently saw its value appraised at nearly $12 million. Even accounting for maintenance, taxes, and insurance, the long-term appreciation has been remarkable.

If your goal is both lifestyle enjoyment and long-term wealth preservation, Malibu remains one of the strongest luxury markets in the U.S.

Should You Sell Your Malibu Property?

Selling makes sense if your property no longer fits your financial goals. For instance, if you bought decades ago, you may be sitting on substantial equity that could be reinvested in more diversified ways.

Example: One investor I worked with decided to sell a hillside Malibu property for $8.5 million after originally buying it for $3.2 million. They used the proceeds to rebalance their portfolio into a mix of real estate investment trusts (REITs), municipal bonds, and a retirement annuity. This shift provided more liquidity and income stability than holding a single luxury property.

Should You Hold?

If you already own Malibu real estate and don’t need liquidity, holding can be the most practical option. Luxury markets like Malibu have historically rewarded patience.

Example: A family that bought their Malibu home in the 1990s has seen it passively grow in value while also serving as a multi-generational gathering place. The property is now worth several times its purchase price, but for them, the emotional value has outweighed the financial gains.

Holding allows you to ride out periods of uncertainty without losing access to a property that continues to appreciate over time.

How Malibu Real Estate Fits Into Your Financial Plan

The decision to buy, sell, or hold Malibu property isn’t just about the housing market—it’s about how it integrates with your entire financial strategy. Factors like retirement planning, tax exposure, and risk tolerance all play a role.

At Manna Wealth Management, I help clients balance these questions every day. For some, real estate represents 50% or more of their net worth, which means diversification is critical. For others, real estate is about lifestyle first and investment second.

You can read more about my approach to financial advising in my advisor profile.

Final Thoughts

Malibu real estate continues to attract investors, but the right move depends on your personal goals.

• If you’re looking for long-term appreciation and lifestyle benefits, buying can still be wise.
• If you’ve built substantial equity and want to diversify, selling might be the right path.
• If your property still fits your financial and personal needs, holding is often the most rewarding choice.

Markets come and go, but Malibu’s limited supply and global prestige make it unlike anywhere else. The key is ensuring your real estate decisions support your broader wealth management goals.

If you’d like to explore how Malibu real estate fits into your financial future, I welcome the conversation.