Santa Monica and Malibu are two of the most popular cities in Southern California. They offer beachfront living, outdoor recreation, and some of the best weather you'll find anywhere. But for all of these same reasons, Malibu and Santa Monica are two of America's most expensive real estate markets with median prices well above $1 million. As a result, home buyers in Malibu and Santa Monica often have to use specialized mortgage financing and make bigger down payments, compared to other lower-priced markets.