COVID-19 has a lot of people speculating whether Airbnb rental properties are still a good investment. And in locations like the Palm Springs real estate market, where residents have gone under lockdown once again as of the week of this writing, we start to wonder what 2021 will look like for the local short term rental market. However, before crossing the City of Palm Springs off your list of investment locations, you really need to look at the Airbnb Palm Springs data. This will help you decide whether or not an Airbnb Palm Springs investment property will be a good investment in 2021.
Mashvisor’s Airbnb Palm Springs Market Statistics
The following data is from Mashvisor for the month of November 2020. Mashvisor’s Airbnb Palm Springs data comes directly from Airbnb and all of our analytics are verified by active hosts.
- Average Airbnb Daily Rate: $380
- Monthly Airbnb Rental Income: $5,002
- Airbnb Cash on Cash Return: 4.9%
- Airbnb Occupancy Rate: 67%
So, Is Airbnb Palm Springs a Good Investment for 2021?
Looking at the Airbnb data above for the Palm Springs housing market, one thing is clear: local hosts are still making money during the coronavirus pandemic. In times when there are no mandatory lockdowns or travel bans, people are still booking Palm Springs vacation rentals.
Three key Airbnb stats are actually up, despite the pandemic. Back in December 2019 (pre-COVID-19), this was what Mashvisor’s data looked like for the Palm Springs real estate market:
- Monthly Airbnb Rental Income: $4,470
- Airbnb Cash on Cash Return: 4.1%
- Airbnb Occupancy Rate: 59%
5 More Reasons to Invest in an Airbnb Palm Springs Rental Property in 2021
While all your investment decisions should be backed by reliable data, there are a few other reasons why you should invest in Airbnb Palm Springs in 2021.
Airbnb Named Palm Springs, CA a “Top Spot” for 2021
Both Mashvisor and Airbnb agree- the Palm Springs housing market 2021 is the place for buying an Airbnb property. Airbnb lists Palm Springs as a “top spot” in its 2021 travel trends predictions. According to the report, domestic travel will be a major trend next year. The home-sharing company believes more people will prefer to visit year-round vacation getaways, like Palm Springs.
It’s Legal to Operate a Non-Owner Occupied Airbnb in Palm Springs
Besides looking at the data, one of the first things you should wonder when considering a vacation rental investment is “Is Airbnb legal in the city?” Although the local Airbnb regulations are strict, it is legal to operate a non-owner occupied rental property in Palm Springs.
To learn more about the various Airbnb laws and ordinances, read Airbnb Palm Springs Regulations: What Investors Should Know.
Around 600,000 Tourists Stay in “Non-Hotel” Accommodations Every Year
Another interesting factor that makes an Airbnb Palm Springs investment desirable is the fact that so many visitors stay in vacation rental properties. While close to 1 million tourists choose to stay in hotels, 600,000 prefer “non-hotel” accommodations. Mashvisor’s Airbnb occupancy rate data already hinted at the fact that plenty of tourists book Airbnbs when visiting Palm Springs. But it should offer some reassurance to any interested real estate investor that a smaller vacation rental would see bookings in 2021 as well.
The Palm Springs Real Estate Market as a Whole Is Booming During COVID-19
Although tourist stats and Airbnb data may be the first thing you look at when considering this type of real estate investment, it’s important to review the general market health as well. After all, you will own an investment property in the Palm Springs real estate market. Regardless of the rental strategy you choose to apply, you should consider some market factors before making a decision.
When it comes to the Palm Springs housing market, you’ll find that COVID-19 has not managed to slow it down. The Coachella Valley, in general, is seeing home sales soar. With more people working remotely and having the choice to live anywhere, areas like Palm Springs have become the ideal place to settle down. This rise in demand is outpacing supply and currently, the Palm Springs housing market is going strong.
Such conditions are likely to continue through 2021 as mortgage rates hover near historic lows and more companies permanently adopt remote working.
Your Palm Springs Real Estate Property Will Appreciate in Value
Because of the imbalance in supply and demand, your Airbnb Palm Springs real estate investment is sure to appreciate in value in 2021. Zillow forecasts that, from now through October 2021, Palm Springs home values will rise by 8.7%.
This is a positive trend for sure. But it’s important to note that Palm Springs real estate is already relatively expensive compared to the national home price:
- Median Property Price for Palm Springs: $595,597 (according to Mashvisor)
- US Median Property Price: $348,000
The takeaway? It’s best to work on finding an Airbnb investment in the Palm Springs market now and enjoy the appreciation yourself rather than having to pay more in the near future.
How to Find a Profitable Airbnb Property in Palm Springs
We’ve established that an Airbnb Palm Springs, CA investment will be a good one in 2021. But you now also know that the market is hot. So how can you easily find an Airbnb property that will provide good returns? Use Mashvisor’s Rental Property Finder.
Start by signing up for Mashvisor and navigating to the Rental Property Finder tool. Set the location to Palm Springs, CA. From there, you have a few filters to choose from including your budget and the rental strategy – set the latter to Airbnb.
Here’s what the results would look like if you used this tool:
As you can see, Mashvisor’s real estate investment tool will help you quickly find an Airbnb property with high cash on cash return. You’ll be able to find deals well before anyone else in the Palm Springs market. Sign up today and get 15% off.