03/20/2026
After nearly a decade of discussion, Capitola has approved new zoning for the mall site. What’s changed is the framework. Large-scale redevelopment is now possible in a way it wasn’t before. The city has opened the door to housing, mixed-use with a hotel, or a more commercial approach, with the potential for over 1,700 housing units.
For a place many of us have driven past without thinking much about, and watched slowly empty out over the years, that’s meaningful.
What this means for the community
This is no longer just an idea. The mall site is moving into a phase where real decisions will shape what comes next, including how housing, traffic, and local character are balanced.
What this means for sellers
If you own property in Capitola, Live Oak, or nearby, this is less about immediate action and more about understanding what’s changing around you. Over time, redevelopment like this can bring more activity, services, and visibility, which often supports property values.
In the near term, buyers may become more selective as they try to understand what the area will look like in the future. Some will be drawn to the added energy and convenience, while others may hesitate.
The impact will vary by location. Homes that benefit from proximity without direct disruption may see stronger demand, while properties closest to the site may require more thoughtful positioning and timing. For sellers, the key is understanding how your specific property fits into what’s unfolding around it.
A different way to look at it
This isn’t just about a mall. It’s about a part of Capitola that hasn’t felt fully alive for some time and may finally come back to life.
It’s still early, with no plans or timeline yet. But something has clearly changed, and it’s worth paying attention to what comes next. If you’re wondering where your home fits into this, I’m available as a resource.
