Felton's housing reflects its forested, mountain-town character. Homes are set among redwoods and along winding valley roads, with a mix of older cottages, mid-century houses, and some newer construction on hillside and creekside lots. The setting lends a sense of privacy and seclusion that is rare in more conventional suburbs, and the housing stock is overwhelmingly owner-occupied and detached single-family in character. Because the community is fully developed within a constrained mountain valley, new construction is limited, and buyers typically find established homes on wooded lots rather than large new subdivisions. This gives Felton a settled, cabin-and-redwood ambiance distinct from the coast below.

Felton is a small mountain community organized around a modest commercial center and the surrounding valley neighborhoods. The downtown stretch along Highway 9 holds the shops and restaurants that anchor local life, while residential streets climb the wooded hillsides and follow the San Lorenzo River and its tributaries. Rather than formal subdivisions, Felton's neighborhoods are defined by the landscape—redwood groves, creeks, and steep forested slopes shape the pattern of homes. The town blends into its surroundings, with Henry Cowell Redwoods State Park bordering the community and Roaring Camp Railroads sitting at its edge, so that forest and neighborhood intermingle throughout.

Life in Felton is shaped by the redwoods and the mountain setting. The town's small, walkable center offers local dining, shopping, and a laid-back, outdoorsy culture, while Roaring Camp Railroads and Henry Cowell Redwoods State Park bring a steady stream of visitors and keep tourism woven into the local economy. Residents tend toward an active, nature-oriented lifestyle, with hiking, cycling, and river access all close at hand. The town sits within the orbit of Santa Cruz and the Silicon Valley, so the community blends a mountain retreat's calm with access to coastal cities and commuter employment. Most residents own their homes, reinforcing the area's settled, rooted feel.

Felton is served by the San Lorenzo Valley Unified School District, which educates students from across the valley communities. San Lorenzo Valley Elementary School is located within Felton, serving the community's younger students, while the district operates middle and high schools elsewhere in the valley, including Coast Redwood High School along Highway 9. The schools reflect the area's small, community-centered scale and its mountain-town setting. For families, the district's local campuses and the community's strong sense of place make Felton an appealing choice, with additional educational options available in nearby Santa Cruz and Scotts Valley.

Felton is reached via Highway 9, the winding mountain road that runs through the San Lorenzo Valley, connecting the community south to Santa Cruz and north toward Scotts Valley and the Silicon Valley corridor. The drive to Santa Cruz takes roughly fifteen minutes, while the broader Santa Cruz Mountains road network links Felton to the coast and the Bay Area. As in most mountain communities, personal vehicles are the dominant mode of transportation, and the scenic, forested roads are part of the area's character. The town's position gives residents a rural commute setting within reach of regional employment centers.

Recreation in Felton is inseparable from the redwoods. Roaring Camp Railroads offers steam-train excursions through the forest, and Henry Cowell Redwoods State Park, bordering the community, provides old-growth redwood groves, hiking trails, and access to the San Lorenzo River. The Felton Covered Bridge is a popular landmark and gathering spot. The surrounding Santa Cruz Mountains offer mountain biking, hiking, and scenic drives, while the beaches and coastal recreation of Santa Cruz lie a short drive away. This combination of forest, river, and coast makes Felton a natural base for an active, outdoor-oriented lifestyle.