Trends & NewsPalm Springs Real Estate Market Forecast 2020 by Hamza Abdul-Samad January 15, 2020January 10, 2020 by Hamza Abdul-Samad January 15, 2020January 10, 2020When you think of the California housing market, the first thing that probably comes to mind is the rising affordability issue. House prices have been on the rise for years now as inventory remains low. However, for the savvy real estate investor who can afford to buy a rental investment property in California, this real estate market can be quite profitable thanks to the fact that many people across the state rent out their homes rather than own them.But, where should you invest in California real estate in 2020? You’ll want to look for a relatively affordable city that promises a good return on investment and favorable conditions for buyers. That description perfectly fits the Palm Springs real estate market.Before you rush to start your investment property search here, you’ll want to take a look at our Palm Springs real estate market forecast first. We’ll focus on two key areas today:The Palm Springs housing market dataThe Palm Springs real estate market trends for 2020Palm Springs Real Estate Market: Mashvisor’s Investment DataHow is the Palm Springs CA real estate market performing? To answer this, we need to take a look at the city’s investment data. Where can you obtain access to this real estate data? Look no further! With Mashvisor’s investment tools, you can analyze any rental property and market in the nation. CLICK HERE to learn more about Mashvisor’s assortment of real estate investment tools. Below is the data for the Palm Springs real estate market 2020:Median Property Price: $602,272Price per Square Foot: $310Price-to-Rent Ratio: 21Traditional Rental Income: $2,413Traditional Cap Rate / Cash on Cash Return: 1.2%Airbnb Rental Income: $4,465Airbnb Cap Rate / Cash on Cash Return: 4.1%Airbnb Occupancy Rate: 59.4% Palm Springs Real Estate Market 2020 TrendsNow, let’s dive deeper into why you should invest in Palm Springs real estate this year. There are seven favorable Palm Springs real estate market conditions that you should know about:Both Traditional and Airbnb Palm Springs Rental Properties Will Be ProfitableRental income is the name of the game in real estate. Therefore, investors should purchase rental properties in markets that have a high average rental income. Looking at the numbers for the Palm Springs housing market 2020 above, both traditional and Airbnb Palm Springs rental properties promise a high rental income and a good return on investment (ROI).Airbnb Palm Springs is far more lucrative than the traditional rental strategy. In fact, the Palm Springs real estate market data for Airbnb rental income and ROI are actually higher than the California housing market’s averages of $3,797 and 2.8%, respectively.Palm Springs House Prices Will Be Relatively AffordableAs mentioned earlier, California is notorious for its high property prices. According to Mashvisor’s real estate market analysis, the median property price in the state is $681,169. Palm Springs real estate, therefore, acts as an affordable option in California. Of course, Palm Springs house prices are by no means considered affordable on the national level. As seen, the median income property in Palm Springs costs $602,272. However, if you’re hoping to make money with California real estate, then Palm Springs investment properties for sale will help you save some money while doing so.Want to find a Palm Springs investment property within your budget? Click here.Related: 4 Most Affordable Cities in the California Real Estate MarketThe Palm Springs Real Estate Market Will Be a Cool Buyer’s MarketThe Palm Springs real estate market makes for a great place to invest right now because it is currently a cool buyer’s market according to Zillow. Redfin gives the market a competitive score of 31 (somewhat competitive), where typically homes for sale get 1 offer and are sold for 3% below list price. And as we move forward in 2020, this is likely to remain the case as property prices are not set to increase.Related: Will the 2020 Housing Market Be a Seller’s Market or a Buyer’s Market?Traditional Rental Properties Will Be in High DemandAs we’ve seen, traditional rental properties will enjoy a high rental income and ROI. This is due to the fact that these rentals have been and will continue to be in high demand. The Palm Springs real estate market has a price-to-rent ratio of 21. This means that for residents, it is more affordable to rent than buy Palm Springs houses for sale. As a result, over 41% of the desert resort’s residents live in a rental property.Palm Springs Will Be Impacted By the New California Rent Control Law2020 will bring a new change to rent increases to Palm Springs and California as a whole. In an effort to fix its housing crisis, California passed a rent control law. Effective January 1st, 2020, the California rent control law limits rent increases to only 5% per year. This includes local California inflation. However, the total rental rate will not exceed a 10% increase including inflation. The law also includes a ‘just cause’ requirement for evictions. In other words, landlords must have a reason for evicting tenants. Violating a lease, for instance, falls under this requirement.Still, even with these new laws in place, owning a rental property can be profitable in the long run. To learn some tips on how to invest in areas with rent control, read our guide: How to Invest in Areas with Rent Control.Airbnb Palm Springs Will Remain Legal in 2020Looking at some of the Airbnb data above, you may be wondering, is Airbnb even legal in Palm Springs? Fortunately, the answer is yes. Still, there are many Palm Springs Airbnb laws real estate investors must know. We’ll cover the most essential Airbnb regulations here. However, you should take a look at Airbnb’s Palm Springs Help Page for the full details.Most importantly, non-owner occupied rentals are legal in Palm Springs. However, these properties can only be rented out for 36 Airbnb guest stays per year. Occupancy is restricted to two adults per night and one vehicle per bedroom. In addition, an 11.5% Transient Occupancy Tax must be paid by Airbnb hosts.Related: 10 Cities With Airbnb Legal Issues In 2020 Find a Profitable Airbnb Investment PropertyPalm Springs Short-Term Rentals Will Thrive Thanks to Local TourismThe main reason the Airbnb rental strategy makes for the best choice when investing in Palm Springs real estate is the booming tourism industry. Tourism is actually the largest economic sector in Palm Springs. Snowbird tourism is especially popular in the Palm Springs real estate market. As a desert resort, Palm Springs’ population grows three-fold in winter months every year.An Airbnb Palm Springs investment property will also benefit from the many festivals and events taking place in 2020. The most notable of these will occur in the following months:Beginning of January: Palm Springs International Film FestivalFebruary: Tour de Palm Springs, Palm Springs Modernism Week (second half of February), Riverside County Fair and National Date Festival (middle of February)March: BNP Paribas Tennis Tournament, American Documentary Film FestivalApril: Coachella Valley Music Festival Weekend One and TwoMiddle of June: Palm Springs International Short Film Festival – ShortfestThe Airbnb Palm Springs market will continue to be a hot real estate market in 2020.Start Investing in Palm Springs Real Estate NowThe Palm Springs real estate market will be a top Californian market in 2020. Want to start investing in Palm Springs real estate? To search for Palm Springs houses for sale, CLICK HERE to start your FREE trial with Mashvisor! Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsCaliforniaPalm Springs CATraditional 0FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-SamadHamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post How to Find the Best Rental Investment Property for Sale in 2020 Next Post Home Selling Process: 8 Steps You Can’t Skip Related Posts Did You Know Easter Is the Best Time to Buy a House for Investment? 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