For the best area to stay in Santorini, it really comes down to having an understanding of its towns, what they have to offer, the prices, views, surrounding activities, and the kind of accommodations that are available.
When it comes to views, it may not be the #1 spot for sunsets, it is a close second. Facing down towards the volcanic island and the orange glow of the sun, it is a picturesque balance of the slew of white-painted buildings seemingly clinging onto the cliff meeting the Aegean Sea.
From here, there are still caldera views as well and you have the benefit of looking back at Fira. Hotels are also easily half the price of what you'll find in Fira.
Being sandwiched in the middle also means that you have great access to both Fira and Imerovigli.
It's no secret that Oia is the number 1 spot to see the sunset in Santorini. What makes it such a magical experience is that the sun drops in a way that provides a perfect framing for a photo that includes the sea, sky, sun, and town.
What you'll really like about this town is that it's incredibly beautiful and photogenic. With a whole mountain dotted with whitewashed buildings, idyllic churches, local artisan boutiques, maze of cobblestone alleyways to explore, and castle, you'll have almost all to yourself if you stay here.