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Palm Springs

Located in Southern California, Palm Springs is home to over 48,000 residents, making it the 4th largest city in the Coachella Valley. The city has seen a decent amount of population growth over the years. This growth in population is projected to continue, which is a good sign for real estate investors. And with 42% of the residents living in rental properties rather than owning their own home (according to NeighborhoodScout), buying a rental property in the Palm Springs housing market is a great option, especially when it comes to long-term rentals. 

Palm Springs enjoys a healthy economy that is mainly founded on the tourism industry. It is a popular tourist destination with a global reputation for first-class resorts and hotels, gourmet restaurants, eclectic shopping, upscale recreational opportunities, and unique architecture.  Due to its year-round hot weather and proximity to major cities in California, Palm Springs is also a popular winter getaway and retirement destination, especially for celebrities from Hollywood. The city has been gaining increasing popularity among younger generations, owing to its numerous festivals and international events such as the Palm Springs International Film Festival, and attractions such as the Palm Springs Aerial Tramway, the Living Desert Zoo and Gardens, and the Palm Springs Art Museum. An estimated 14 million tourists visited the Greater Palm Springs area in 2017, contributing more than $5.5 billion to the local economy. The city is, therefore, a great location for investing in short-term rental properties due to its heavy reliance on tourism. Other industries driving local economic growth include healthcare, retail trade, finance, construction, and manufacturing.


The Palm Springs real estate market benefits from robust business conditions. It is one of the two most active markets in the Coachella Valley. The revitalization of Downtown Palm Springs is seen as a catalyst to the city’s momentum: With development comes a better lifestyle, and a better lifestyle draws buyers and renters.

Palm Springs Realtors and Real Estate Agents

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Palm Springs  Real Estate Investment Performance
Facts and Market Trends in Palm Springs
Homes For Sale397
Airbnb Properties251
Rental Properties263
Traditional Vacancy rate4.70%
Airbnb Occupancy Rate57.14%
Mashmeter70.01%
Median Price$592,676
Median Rent Price$12,770
Price/sqft$304
Median Days on Market119
Price to Rent Ratio19.0
Average Cap Rate
Airbnb4.78%
Traditional2.30%
Average Rental Income
Airbnb$4,174
Traditional$2,600
 
Median Household Income$45,497
Population48,375
Transportation in Palm Springs
35 / 100
Car-Dependent
29 / 100
Some Transit
45 / 100
Somewhat Bikeable
Palm Springs  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$1,751$2,351$2,694$5,271$5,396
Traditional$953$1,570$2,192$2,764$3,574
Palm Springs, CA - Homes for Sale - Newly Listed
Investment Properties for Sale
$589,900
MLS PW19266003
1840 N Hermosa Drive
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds2 baths1,746 sq.ft.
CAP RATE
Trad. 1.81%Airbnb 5.15%
Investment Properties for Sale
$839,000
MLS OC19264603
2232 N Vista Grande Avenue
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds3 baths2,373 sq.ft.
CAP RATE
Trad. 0.61%Airbnb 2.96%
Investment Properties for Sale
$185,500
MLS PW19264272
500 E Amado Road #221
Palm Springs, CA 92262
Palm Springs
Condo/Coop
1 beds2 baths736 sq.ft.
CAP RATE
Trad. 1.78%Airbnb 3.59%
Investment Properties for Sale
$719,000
MLS 219033824
1538 E Verbena Drive
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds4 baths1,431 sq.ft.
CAP RATE
Trad. 1.03%Airbnb 3.79%
Top Performing Palm Springs Properties
Investment Properties for Sale
$405,000
MLS 219024581
728 Mira Grande
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds2 baths1,630 sq.ft.
CAP RATE
Trad. 3.02%Airbnb 7.93%
Investment Properties for Sale
$425,000
MLS 19-494048PS
3001 North CHUPEROSA Road
Palm Springs, CA 92262
Palm Springs
Single Family Residential
4 beds2 baths1,320 sq.ft.
CAP RATE
Trad. 4.80%Airbnb 7.93%
Investment Properties for Sale
$394,900
MLS 219033810
1528 N ViA Miraleste
Palm Springs, CA 92262
Palm Springs
Townhouse
3 beds4 baths1,527 sq.ft.
CAP RATE
Trad. 2.79%Airbnb 7.82%
Investment Properties for Sale
$369,000
MLS PV19230983
852 N Calle De Flora
Palm Springs, CA 92262
Palm Springs
Condo/Coop
3 beds2 baths1,347 sq.ft.
CAP RATE
Trad. 2.37%Airbnb 7.71%
Recently Sold Homes in Palm Springs, CA
Investment Properties for Sale
$2,500,000
MLS 17-238522PS

Palm Springs, CA 92262
Palm Springs
Multi Family
8 beds9 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$230,000
MLS OC19261003
500 E Amado Road #316
Palm Springs, CA 92262
Palm Springs
Condo/Coop
1 beds2 baths736 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$429,900
MLS JT19134236
682 E Daisy Street
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds2 baths1,870 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Investment Properties for Sale
$124,500
MLS 219010811
5300 E Waverly Drive #5202
Palm Springs, CA 92264
Palm Springs
Condo/Coop
0 beds1 baths609 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Property Value Changes and Real Estate Appreciation in the Palm Springs Housing Market

The Palm Springs real estate market has witnessed a strong real estate appreciation in recent years. Since Q1 of 2000, Palm Springs properties have experienced a total appreciation of 146.89% according to NeighborhoodScout, which is an average annual home appreciation rate of 4.81%. Property value is still climbing in the Palm Springs housing market as Zillow reports an appreciation of 5.6% over the past year. This housing market trend is expected to continue, which makes Palm Springs a seller’s market with large opportunities for long-term return on investment.

Palm Springs, CA Top Multi Family Homes
Investment Properties for Sale
$869,000
MLS PW18238010
959 E Vista Chino
Palm Springs, CA 92262
Palm Springs
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 3.96%Airbnb N/A
Investment Properties for Sale
$869,000
MLS PW19020454
955 E Vista Chino
Palm Springs, CA 92262
Palm Springs
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. 3.84%Airbnb N/A
Investment Properties for Sale
$900,000
MLS WS18099398
3760 EL Dorado Boulevard
Palm Springs, CA 92262
Palm Springs
Multi Family
beds baths0 sq.ft.
CAP RATE
Trad. 2.16%Airbnb N/A
Investment Properties for Sale
$525,000
MLS 19-493404PS
2890 North BISKRA Road
Palm Springs, CA 92262
Palm Springs
Multi Family
4 beds3 baths2,036 sq.ft.
CAP RATE
Trad. 1.53%Airbnb N/A
Homes Below Median Price in the Palm Springs, CA Real Estate Market
Investment Properties for Sale
$405,000
MLS 219024581
728 Mira Grande
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds2 baths1,630 sq.ft.
CAP RATE
Trad. 3.02%Airbnb 7.93%
Investment Properties for Sale
$425,000
MLS 19-494048PS
3001 North CHUPEROSA Road
Palm Springs, CA 92262
Palm Springs
Single Family Residential
4 beds2 baths1,320 sq.ft.
CAP RATE
Trad. 4.80%Airbnb 7.93%
Investment Properties for Sale
$394,900
MLS 219033810
1528 N ViA Miraleste
Palm Springs, CA 92262
Palm Springs
Townhouse
3 beds4 baths1,527 sq.ft.
CAP RATE
Trad. 2.79%Airbnb 7.82%
Investment Properties for Sale
$369,000
MLS PV19230983
852 N Calle De Flora
Palm Springs, CA 92262
Palm Springs
Condo/Coop
3 beds2 baths1,347 sq.ft.
CAP RATE
Trad. 2.37%Airbnb 7.71%
Palm Springs Airbnb Growth and Regulations

With its booming tourism industry, Palm Springs has experienced major Airbnb growth over the years. In 2017, a total of 120,000 Airbnb guests stayed at Palm Springs short-term rentals, bringing a total revenue of $29 million to the local Airbnb hosts. 

Airbnb is legal in Palm Springs but there are some restrictions set by the city’s short-term rental ordinance. Airbnb Palm Springs hosts can choose to operate either a homeshare - i.e. renting out a bedroom(s) in their home for 28 days or less while residing on-site - or a vacation rental - i.e. renting out a non-owner occupied accommodation for 28 days or less.  Occupancy is limited to 2 adult guests overnight and 1 vehicle per bedroom. While homeshares do not have annual limits for guest stays, vacation rentals are limited to 36 guest stays per calendar year.


In order to legally operate a short-term rental, Airbnb Palm Springs hosts must obtain a city-issued Registration Certificate as well as a Transient Occupancy Tax Permit. As part of the operational requirements, the city requires a “responsible person” over the age of 25 to sign a contract with the operator, and the operator is required to personally meet and greet guests at their arrival to explain to them the local rules and regulations, in addition to obtaining a signature of receipt of the Statement of Rules and Regulations, also known as the Good Neighbor Brochure.

Palm Springs, CA Top Airbnb Homes
Palm Springs Airbnb
$108 per night
Entire home/apt · 1 bed
Casa Ponderosa
579
Palm Springs Airbnb
$309 per night
Palm Springs Airbnb
$355 per night
Entire home/apt · 4 beds
Mid Century Modern Alexander Home
353
Palm Springs Airbnb
$331 per night
Entire home/apt · 4 beds
Mid Century Modern Home with Pool
289
Palm Springs, CA Homes for Rent
Investment Properties for Sale
$1,295
MLS 219033501
Investment Properties for Sale
$950
MLS 219033086
15880 La Vida Drive
Palm Springs, CA
Palm Springs
Single Family
0 beds1 baths600 sq.ft.
Investment Properties for Sale
$3,000
MLS 219032414
Investment Properties for Sale
$2,775
MLS 19-522234
2106 South DIVOT Lane
Palm Springs, CA
Palm Springs
Single Family
3 beds2 baths1,456 sq.ft.
Palm Springs, CA Open Houses
Investment Properties for Sale
Open 11 AM to 2 PM
$719,000
MLS 219033824
1538 E Verbena Drive
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds4 baths1,431 sq.ft.
CAP RATE
Trad. 1.03%Airbnb 3.79%
Investment Properties for Sale
Open 1 PM to 4 PM
$1,299,000
MLS 219033785
38681 E Bogert Trail
Palm Springs, CA 92264
Palm Springs
Single Family Residential
3 beds4 baths4,236 sq.ft.
CAP RATE
Trad. -0.12%Airbnb 1.41%
Investment Properties for Sale
Open 12 PM to 2 PM
$397,000
MLS 219033513
1803 Grand Bahama Drive
Palm Springs, CA 92264
Palm Springs
Condo/Coop
2 beds2 baths1,391 sq.ft.
CAP RATE
Trad. 0.92%Airbnb 1.25%
Investment Properties for Sale
Open 11 AM to 1 PM
$383,000
MLS 219033372
1340 E Padua Way
Palm Springs, CA 92262
Palm Springs
Single Family Residential
2 beds2 baths1,212 sq.ft.
CAP RATE
Trad. 2.50%Airbnb 2.84%
Best Palm Springs Neighborhoods for Buying Investment Property
70%
Mashmeter
property price
$495,000
Median
cap rate
6.12%
Traditional
10.26%
Airbnb
rental income
$2,525
Traditional
$4,234
Airbnb
homes for sale
397
occupancy rate
57%
Airbnb
All Palm Springs Neighborhoods