Highway 1 does something strange south of Carmel-by-the-Sea. The road narrows, the trees thicken, and the ocean drops away below granite cliffs. This is Carmel Highlands.
It's a small, unincorporated community in Monterey County, tucked between the village of Carmel-by-the-Sea and the start of Big Sur. Homes here sit on forested hillsides above the Pacific, many with views that stretch for miles.
This guide covers what makes Carmel Highlands different from Carmel-by-the-Sea proper. It also walks through nearby sub-areas like Carmel Point, Carmel Woods, and Point Lobos, so you understand how the whole area fits together before you buy, sell, or just visit for the weekend.
What Is Carmel Highlands, Exactly?
Carmel Highlands sits along Highway 1, just south of Carmel-by-the-Sea. It's not an incorporated city. There's no city hall, no mayor, no town square.
What it has instead is quiet. Homes are spaced out along the coastline and up into the hills. Many are hidden behind pine and cypress trees, invisible from the highway.
The coastline here is rugged. Granite rock formations meet the surf, and waves crash against the cliffs below most properties. It's a dramatic setting, and it draws people who want privacy over foot traffic.
Compared to the village of Carmel-by-the-Sea, Carmel Highlands feels more remote. There are no shops to stroll past and no crowds on the sidewalk. It's a place people choose specifically to get away from all that.
A Landmark Worth Knowing
If you drive through Carmel Highlands, you'll pass the Hyatt Carmel Highlands, once known as the Highlands Inn. It's one of the most recognized landmarks in the area.
The hotel's restaurant, Pacific's Edge, sits right on the cliffside. Locals often recommend it for sunset dinners, since the dining room looks straight out over the water. It's a good reference point if you're trying to picture where Carmel Highlands sits along the coast.
How Carmel Highlands Compares to Carmel-by-the-Sea
Carmel-by-the-Sea is the village a few minutes north. It's a one-square-mile city, incorporated back in 1916, and it runs on its own set of rules.
Homes here don't have traditional street addresses. Instead, they're identified by cross streets, like "northwest corner of Camino Real and 12th Avenue." Mail isn't delivered to homes either. Residents pick it up at the post office, a tradition that goes back to a 1929 ordinance.
There are no traffic signals in the village. Locals say the intersections work fine without them, since drivers just take turns.
In July 2024, the Carmel-by-the-Sea City Council voted to start adding street addresses for the first time in the city's history. The change is still being phased in, so don't expect every home to have a number posted yet. You can read more about the city's history and addressing traditions on Wikipedia's page covering the city.
Carmel Highlands never had these quirks, since it was never incorporated as part of the city. It runs under Monterey County rules instead. If you want walkable streets, small shops, and a tight-knit village center, the village wins. If you want space, privacy, and ocean views without neighbors close by, Carmel Highlands is the better fit.
Buyers weighing both areas can start with the Carmel Highlands neighborhood page or the Carmel-by-the-Sea neighborhood overview to compare the two side by side.
Point Lobos: The Coastline Between Two Worlds
Between Carmel Highlands and the village sits Point Lobos State Natural Reserve. It's one of the most photographed stretches of coast in California.
The reserve has hiking trails that wind along cliffs and through cypress groves. Visitors come for the tide pools, the sea lions, and the otters that float just offshore. Whale watchers show up in winter and spring, when gray whales pass close to shore.
Point Lobos isn't a neighborhood you can live in. But it shapes daily life for anyone in Carmel Highlands or the village. Many residents walk or hike here regularly, since it sits right between the two communities.
For trail maps and current hours, check the official Point Lobos State Natural Reserve site before you go. Parking fills up fast on weekends, so plan an early start if you can.
Carmel Point: Life Near the River Mouth
Carmel Point is one of the established residential neighborhoods inside Carmel-by-the-Sea itself. It sits where the Carmel River meets the ocean.
Homes here have access to two beaches within walking distance. One sits along the open coast. The other is tucked near the river mouth, calmer and better for families with young kids.
Carmel Point draws people who want beach access every day without a long drive. Streets are quiet, and many homes have ocean or river views. It's a smaller, tighter pocket than the main village, but still close enough to walk to shops and restaurants.
Anyone weighing Carmel Point against Carmel Highlands should think about daily routine first. Carmel Point puts you steps from sand. Carmel Highlands puts you above the water, with more distance and more privacy. You can compare listings and details on the Carmel Point neighborhood page.
Carmel Woods: The Quiet Hidden Gem
Carmel Woods is another residential pocket inside Carmel-by-the-Sea, and it's easy to miss if you don't know where to look. Locals often call it a hidden gem, tucked away from the main tourist paths.
The streets here are lined with mature trees, and the pace is slower than the village center. Homes tend to sit close together but still feel private, thanks to heavy landscaping and tree cover.
Carmel Woods works well for buyers who want walking access to the village without living right in the middle of it. It's a short trip to shops and restaurants, but the noise and crowds stay behind. Details on current homes are on the Carmel Woods neighborhood page.
Comparing the Sub-Areas at a Glance
Here's a simple way to think about the differences:
- Carmel-by-the-Sea village: walkable streets, shops, restaurants, no home mail delivery
- Carmel Point: beach access, river views, quiet residential streets
- Carmel Woods: tucked-away, tree-lined, close to the village but calm
- Carmel Highlands: cliffside privacy, ocean views, forested hillsides above Highway 1
Each area serves a different kind of buyer. None is better across the board. It depends on what daily life you want.
Why Buyers Choose Carmel Highlands
People buy in Carmel Highlands for the view first. Homes here often sit high enough to see the ocean stretch to the horizon, with granite rock and crashing surf below.
Privacy is the second draw. Lots tend to be larger than in the village, and trees screen most homes from the road and from each other. You won't hear much traffic noise once you're set back from Highway 1.
A drive through the Highlands at sunset shows why people fall for it. The light hits the water in gold and pink, the cypress trees turn dark against the sky, and the whole hillside goes quiet except for the waves below. Couples often pull over just to watch it happen before continuing toward Big Sur.
The trade-off is distance. Carmel Highlands sits a few minutes south of the village by car. You won't walk to dinner the way you can from Carmel Point or Carmel Woods. Most residents accept that trade for the setting they get in return.
The Road South: Big Sur Coast
Carmel Highlands marks the start of the drive toward Big Sur. The highway keeps hugging the cliffs south of the Highlands, past more rugged coastline and fewer buildings.
Big Sur itself has no real town center. It's a stretch of coast known for state parks, redwood groves, and pullouts with ocean views. You can check current conditions and highlights on the official Big Sur California visitor site before heading south. Many Carmel Highlands residents treat it as their backyard, since the drive south takes just minutes.
This proximity is part of the appeal for buyers who love the outdoors. You get a home base in Carmel Highlands, with Big Sur's trails and beaches a short drive away, and the village of Carmel-by-the-Sea just as close in the other direction.
Finding the Right Realtor for Carmel Highlands and Carmel-by-the-Sea
Buying or selling in this area takes local knowledge. Lot sizes, view easements, and septic systems vary block by block in Carmel Highlands, and the village has its own quirks with addressing and permits.
An agent who works this coastline daily will know which streets get full sun, which homes have deeded beach access, and which listings in Carmel Woods or Carmel Point rarely hit the open market. That kind of detail doesn't show up in a listing photo.
If you're comparing agents, start with a list of the Top Realtors in Carmel-by-the-Sea to see who works this specific market. Local experience matters more here than in most places, given how much these neighborhoods differ from one street to the next.
Buying or Selling in Carmel Highlands
If you're planning to buy, start by getting clear on what matters most to you: ocean views, privacy, or walkability. That answer points you toward Carmel Highlands, Carmel Point, or Carmel Woods.
From there, a local buyer's process can help you move quickly once the right home comes up. Coastal listings here don't sit long. You can read more about the Carmel Highlands buying process before you start touring.
Sellers face a different set of questions. Coastal homes need the right marketing to reach buyers looking specifically for privacy and views. The selling a home in Carmel-by-the-Sea guide walks through what that looks like for a property in this part of the Peninsula.
A Bit of Local History Worth Knowing
Carmel-by-the-Sea has a colorful past that shapes how people see the whole area today, including Carmel Highlands. Clint Eastwood served as mayor of the village from 1986 to 1988, a fact most longtime locals bring up within the first few minutes of any conversation about town history.
That small-town character still shows up in how the village operates, from the lack of street addresses to the absence of traffic lights. Carmel Highlands, being unincorporated, never carried those same rules. But it shares the same artistic, low-key identity that's defined this stretch of coast for a century.
Frequently Asked Questions About Carmel Highlands and Carmel-by-the-Sea
Where is Carmel Highlands located in relation to Carmel-by-the-Sea? Carmel Highlands sits just south of Carmel-by-the-Sea along Highway 1, before the road continues to Big Sur. It's a short drive from the village, but the setting feels far more remote.
Is Carmel Highlands part of the city of Carmel-by-the-Sea? No. Carmel Highlands is unincorporated, which means it isn't governed by the city of Carmel-by-the-Sea. It falls under Monterey County instead, so its rules around zoning and permits differ from the village.
What kind of homes will I find in Carmel Highlands? Most homes in Carmel Highlands sit on forested hillsides above the ocean, often with dramatic views of the granite coastline. Lots tend to be larger and more private than homes in the Carmel-by-the-Sea village or in Carmel Point.
Why doesn't Carmel-by-the-Sea have street addresses? The village has long identified homes by cross streets instead of numbered addresses, a tradition tied to its small-town character. In July 2024, the city council voted to begin adding street addresses for the first time, though the change is still being phased in across Carmel-by-the-Sea.
Why does Carmel-by-the-Sea have no home mail delivery? The village of Carmel-by-the-Sea has never had home mail delivery. Residents pick up mail at the post office instead, a tradition tied to a 1929 ordinance. It's one of the small-town customs that sets the village apart from nearby areas like Carmel Highlands.
What is there to do near Carmel Highlands? Point Lobos State Natural Reserve sits between Carmel Highlands and the village, with hiking trails and sea life viewing along the coast. The Hyatt Carmel Highlands and its restaurant, Pacific's Edge, are also popular spots for a coastal dinner.
How does Carmel Point compare to Carmel Highlands? Carmel Point is a beach neighborhood inside Carmel-by-the-Sea, near the mouth of the Carmel River, with access to two beaches. Carmel Highlands sits above the water on cliffs, offering more privacy but less walkability than Carmel Point.
Is Carmel Woods close to Carmel Highlands? Carmel Woods sits inside the village of Carmel-by-the-Sea, a few minutes north of Carmel Highlands by car. It's a quiet, tree-lined pocket that locals often describe as a hidden gem, distinct from the cliffside setting of Carmel Highlands.
Is Carmel Highlands a good place for a full-time home or a vacation property? Carmel Highlands works for both. Some residents live there year-round for the privacy and views, while others use their homes as a coastal getaway close to Carmel-by-the-Sea and Big Sur.
How far is Carmel Highlands from Big Sur? Carmel Highlands sits right at the start of the Big Sur coast, just a few minutes south along Highway 1. Many residents treat Big Sur's trails and beaches as an extension of their own neighborhood.
Ready to see what's available in Carmel Highlands or anywhere else on the Peninsula? Browse current listings on the Carmel area home search page, or reach out to the Bambace Peterson Team through their Carmel-by-the-Sea team page to talk through your options in Carmel Highlands, Carmel-by-the-Sea, and the surrounding coast.
