Airbnb RentalsTop LocationsInvesting in the Palm Springs Real Estate Market: What You Need to Know by Eman Hamed August 30, 2018August 28, 2018 by Eman Hamed August 30, 2018August 28, 2018Palm Springs has always been known for its hot weather, but is the Palm Springs real estate market hot as well? Real estate investors aim to find the best investment properties that bring in high profits and return on investment.Since the US housing market crash in 2008, the Palm Springs real estate market has been slowly increasing along with the rest of the country. Ten years have passed and some investors still have questions about what the area is like and if it’s a good location to buy an investment property. Here are a few things to know before deciding to invest in Palm Springs real estate market in 2018.To learn about how we help property investors make faster and smarter real estate investment decisions, click here.Palm Springs Real Estate Market StatsBefore we explain why you should consider investing in Palm Springs this year, let’s take a look at some numbers regarding the average Palm Springs investment property. These numbers are important to any real estate investor because they’ll give you a better understanding of real estate investing in the area. Moreover, you need these numbers when performing a real estate market analysis and to ensure making smart investment decisions. Here’s what the Palm Springs real estate market looks like in 2018:Median Property Price: $632,447Price Per Square Foot: $323.70Traditional Rental Income: $1,754Airbnb Rental Income: $4,143Airbnb Cash on Cash Return: 3.77%Airbnb Cap Rate: 3.77%Airbnb Occupancy Rate: 54%Before analyzing these numbers, I want to quickly mention that they’re obtained from Mashvisor’s rental property calculator. This tool makes the decision-making process easier and more efficient for property investors by providing them with readily calculated data and analytics for investment properties in any city across the US housing market. A real estate investor can use this data to compare and analyze different locations to find the best place to invest in and start generating profits! If you’re wondering how this real estate investing tool works, read: How to Use Mashvisor’s Rental Property Calculator.To start looking for and analyzing the best Palm Springs investment properties, click here.So, what exactly do these numbers tell us about the Palm Springs real estate market?Home Prices Are Rapidly Accelerating in the Palm Springs Real Estate MarketPalm Springs is a part of the California real estate market, so it’s not a surprise that property prices are higher than the national average. Nonetheless, these prices don’t compare to the other most expensive markets in California like San Jose ($1,034,661), Tahoe City ($1,030,586) and San Francisco ($1,518,938). In addition, property investors are advised to take advantage of these housing prices NOW as they’re expected to keep increasing as more and more investors realize how truly lucrative is it to own an investment property in this location.Moreover, properties in the Palm Springs real estate market have appreciated 27.56% over the last 10 years, which is an average annual appreciation rate of 2.46%. While this is not the best rate out there, it should not scare away real estate investors, but rather encourage them to buy now and consider an alternative investment strategy.Do you have a free Mashvisor account? Click here to use our Property Finder and find Palm Springs investment properties in a matter of minutes. This real estate investing tool allows you to find the best properties within your budget and based on your own criteria! Airbnb Is the Optimal Rental Strategy in the Palm Springs Real Estate MarketThe alternative investment strategy we’re talking about is investing in Airbnb rentals. Looking at the above data once again, you can see that a Palm Springs rental property will generate a higher rental income if you rent it out on Airbnb rather than traditionally. How come?The location has a warm and sunny climate, offers various relaxing as well as engaging leisure activities, and hosts some of the biggest music festivals not only in the United States but also worldwide. All of these attract a huge number of tourists and visitors, making the Palm Springs real estate market one of the most popular locations for vacation even during the winter months – making it perfect for vacation rentals.Our data shows that a real estate investor will receive a good return on investment when investing in Airbnb rentals (3.77%). AIRDNA further revealed that Palm Springs is one of the most attractive cities with “lower house prices and above average short-term rental returns.” Needless to say, Airbnb is the optimal rental strategy in the Palm Springs real estate market, so you should definitely consider investing in short-term vacation rentals in the area.Related: These Are the Best Cities for Airbnb Investment 2018Airbnb Laws and Regulations in the Palm Springs Real Estate MarketBefore you start an Airbnb business in Palm Springs (or any city for that matter), you first need to check and be consistent with the laws and regulation regarding short-term rentals. Airbnb requirements differ by states, cities, and zones. In order to operate Airbnb vacation rentals in the Palm Springs real estate market, some of the regulations to keep in mind are:You must apply for and receive both a transient occupancy tax permit and a city-issued vacation rental registration certificate.Airbnb hosts have to include their City Identification Number in their listing and other advertisements.Palm Springs enforces rules and regulations concerning habitability, health, and safety of short-term rentals. Moreover, safety inspections are required as a part of the application process.Occupancy is limited to 2 adult guests overnight and 1 vehicle per bedroom.The total number of guest stays is limited to 32 per the calendar year, with an additional 4 guest stays during the months of July, August, and September.These are just a few of the Airbnb laws and regulations in the Palm Springs real estate market. So, make sure you do further research before you buy and rent out vacation rentals on Airbnb. Don’t take this lightly as any violation will result in administrative fines and penalties.Related: Airbnb Regulations by City Part 3 – Phoenix and Palm Springs.Final Thoughts If you’re considering investing in the Palm Springs real estate market, a smart investment decision would be to 1) buy now before property prices increase further, 2) find a rental property that you can rent for the short-term on Airbnb, and 3) use Mashvisor to start your search!With our real estate investing tool, you can easily find, compare, and analyze different properties in any city and neighborhood in the US housing market to determine the optimal one to invest in and start making money! Sign up with Mashvisor today or click here to start out your 14-day free trial!If you have questions about Mashvisor, click here to read our FAQs and learn more about our tools. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL LocationPalm Springs CASan Francisco CASan Jose CATahoe City CA 0FacebookTwitterGoogle +PinterestLinkedin Eman HamedEman is a Content Writer at Mashvisor. With a focus on market reports, she enjoys researching the state of the real estate market in different cities across the US. Eman also writes about trends, forecasts, and tips for beginner investors to gain the confidence and knowledge they need to make wise decisions. Previous Post Successful Real Estate Investors: 9 Common Traits They Share Next Post Is There Really a Best Time of Year to Buy a House for Real Estate Investing? Related Posts 6 Most Affordable Cities in California for Real Estate Investing What Is an Airbnb Investment Property and How to Make Money With It? Investing in San Diego Real Estate vs. Sacramento Real Estate: What’s Better in 2018? Ever Consider Investing in the Detroit Real Estate Market? Is Baltimore Real Estate a Good Investment for 2018? 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