2018 was a good year for the California real estate market, especially the short term rental market. As we enter the new year, property investors are searching to find out which cities in The Golden State will make for the best places to invest in real estate. According to market predictions, many forecast Joshua Tree as the hottest market in the California Desert – especially when it comes to buying a second home for rental income or vacation rentals. To understand why Joshua Tree houses for sale make for lucrative investment properties, let’s take a closer look at the Joshua Tree real estate market.
Joshua Tree Real Estate
Joshua Tree is not exactly a city on its own, but rather a census-designated place located in San Bernardino County in Southern California with a population of nearly 7,000 people. Even though Joshua Tree is not as large as other real estate markets in California, it still offers property investors luxurious investment opportunities. This place is known for its natural sights and attractions that draw tourists and outdoor enthusiasts looking to escape the city life. Thus, Joshua Tree is one of the best places for an Airbnb property investment.
Related: Investing in Joshua Tree Real Estate: An Unexpectedly Good Opportunity
Overall, the Joshua Tree real estate market is on trend with the rest of the state as inventory is an issue in this region. This lack of supply combined with high demand is causing the median price of Joshua Tree houses for sale to rise. However, compared with larger markets in Southern California like Los Angeles and Orange County, Joshua Tree is affordable, making it more favorable for property investors.
Why Invest in Joshua Tree Short Term Rentals
We already mentioned that Joshua Tree houses for sale make for great short term vacation rentals. But why is that? With the increasing popularity of national parks and the Bohemian lifestyle across the US, Joshua Tree is a popular weekend destination for hikers and rock climbers. It’s only over two hours’ drive from Los Angeles, making it a haven for millennials looking for a break from the city’s frantic lifestyle. Many descend on Joshua Tree and its neighboring towns in the California Desert as the perfect weekend gateway within driving distance.
Moreover, in the past five years, Joshua Tree has been gaining popularity among tourists from all over the world. Besides its natural attractions and lifestyle, there is the famous Joshua Tree Music Festival which is held twice every year, and it’s only 30 minutes away from Coachella Valley. Because of this, Joshua Tree has gone from a destination for hikers and rock climbers to an international attraction luring 3 million visitors per year! This is another reason to consider buying Joshua Tree houses for sale as Airbnb rentals.
Traditional motels don’t draw major attention in the region – millennials visiting Joshua Tree are looking for unique experiences! According to the National Park Service 2017 report, “The lodging sector received the highest direct contributions with $5.5 billion in economic output.” Moreover, based on data from AirDNA, the most popular rental type in Joshua Tree is entire house rentals (92%).
Furthermore, investing in Joshua Tree vacation rentals can provide lucrative streams of income. Thus, property investors can definitely profit as Airbnb hosts in the Joshua Tree real estate market. Here’s what you can expect from buying Joshua Tree houses for sale and renting them out on Airbnb, according to data provided by Mashvisor’s Investment Property Calculator:
- Median Property Price: $304,735
- Price Per Sq/Ft: $228
- Airbnb Rental Income: $2,783
- Airbnb Occupancy Rate: 57%
- Airbnb Cash on Cash Return: 6%
- Airbnb Cap Rate: 6%
Note: This is only an average for the location – you can definitely find rental properties that generate much higher returns! To start looking for and analyzing the best investment properties in Joshua Tree, click here.
Is Airbnb Legal in Joshua Tree?
Before renting out a house on Airbnb or other short term rental sites, property investors must check that it’s legal to start a vacation rental business in the area where they’re investing. As a real estate investor in Joshua Tree investment property, you’ll be relieved to learn that California has not adopted any major short term rental regulations for the region. Meaning Airbnb is neither legal nor illegal. Nonetheless, Airbnb hosts in Joshua Tree (like in other markets) are subject to the transient occupancy tax.
Having said that, property investors should still be cautious of legal issues that might occur when buying Joshua Tree houses for sale as investment properties. This is because locals and older residents in the area don’t want their territory to turn into a real estate business. They also complain about the noise and light pollution caused by tourists visiting. Other than that, Joshua Tree remains a great place for short term rentals and, with high demand and nearly no risk of penalty, property investors are rushing to get in the market.
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
How to Find Joshua Tree Houses for Sale
A lot of real estate investors have realized how hot Joshua Tree real estate is and are eager to invest. So, if you too are also considering this location for real estate investing, you should start searching for Joshua Tree houses for sale now! While a real estate agent can help you, there is an alternative – using Mashvisor’s tools!
First off, our Property Finder tool. This tool allows you to search for property listings in the city of your choice, gives you the ability to filter the results, and shows you a list of the available properties along with their listing price, estimated value, and Airbnb (and traditional) cash on cash return. We did this, and found the following properties in Joshua Tree that are worth considering:
Property 1:
- Listing Price: $160,000
- Estimated Value: $155,329
- Airbnb Cash on Cash Return: 15%
Property 2:
- Listing Price: $169,900
- Estimated Value: $163,424
- Airbnb Cash on Cash Return: 14%
Next is our previously mentioned Investment Property Calculator. This is simply the ultimate tool for any real estate investor. It allows you to analyze the potential profits of rental properties in terms of cap rate, cash on cash return, rental income, Airbnb occupancy rate, and cash flow. Not only that, but this data will be readily calculated, so you don’t have to go through the process of collecting, calculating, and analyzing them manually.
Hand in hand, these investment tools give real estate investors the ability to quickly find lucrative rental properties for sale in any housing market across the US. Interested in giving them a try to find profitable Joshua Tree houses for sale? Start out your 7-day free trial with Mashvisor now.
The Bottom Line
With Joshua Tree gaining more popularity, this area is making a bigger impact on the real estate market than most people realize. Buying investment property in Joshua Tree will present plenty of opportunities. Not only will you own a vacation home to stay at when you want to escape to the California Desert, but you can also rent it out to the flock of tourists on Airbnb and start making money in real estate.
If you’re thinking about investing in Joshua Tree houses for sale, don’t wait too long to buy. With relative affordability, high rental income and return on investment, and the market’s rising popularity, now’s the time to invest! Remember, our real estate investment tools can help you find the perfect rental property in the area that fits within your budget in just 15 minutes.
Sign up to begin your property search with Mashvisor today!