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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 Sale229
Airbnb Properties287
Rental Properties119
Traditional Vacancy rate4.70%
Airbnb Occupancy Rate65.35%
Mashmeter80.99%
Median Price$419,000
Median Rent Price$3,402
Price/sqft$325
Median Days on Market68
Price to Rent Ratio18.4
Average Cap Rate
Airbnb5.22%
Traditional3.73%
Average Rental Income
Airbnb$2,529
Traditional$1,906
 
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$2,150$2,020$2,529$6,298$9,502
Traditional$990$1,642$1,906$3,326$3,336
Palm Springs, CA - Homes for Sale - Newly Listed
$250,000
MLS PW21075774
401 S El Cielo Road #22
Palm Springs, CA 92262
Palm Springs
Condo/Coop
2 beds2 baths1,196 sq.ft.
CAP RATE
Trad. 4.36%Airbnb 4.42%
$227,000
MLS 219060393
2301 S Skyview Drive #1
Palm Springs, CA 92264
Palm Springs
Condo/Coop
2 beds2 baths1,163 sq.ft.
CAP RATE
Trad. 4.35%Airbnb 4.41%
$400,000
MLS 219060448
2091 Paseo Pelota
Palm Springs, CA 92262
Palm Springs
Condo/Coop
2 beds2 baths1,252 sq.ft.
CAP RATE
Trad. 1.51%Airbnb 1.54%
$298,888
MLS 219060431
190 Malibu Drive
Palm Springs, CA 92264
Palm Springs
Other
2 beds2 baths1,100 sq.ft.
CAP RATE
Trad. 4.79%Airbnb 4.84%
Top Performing Palm Springs Properties
$555,000
MLS OC21048897
2232 E Hildy Lane
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds2 baths1,218 sq.ft.
CAP RATE
Trad. 4.55%Airbnb 7.92%
$549,000
MLS 219057953
955 Alta Cresta
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds2 baths2,229 sq.ft.
CAP RATE
Trad. 4.35%Airbnb 7.76%
$925,000
MLS 21-708334
545 W Yorba Rd
Palm Springs, CA 92262
Palm Springs
Single Family Residential
4 beds4 baths1,389 sq.ft.
CAP RATE
Trad. 2.58%Airbnb 7.71%
$169,900
MLS 219059163
2700 Golf Club Drive #17
Palm Springs, CA 92264
Palm Springs
Condo/Coop
2 beds2 baths885 sq.ft.
CAP RATE
Trad. 7.59%Airbnb 7.67%
Recently Sold Homes in Palm Springs, CA
$639,000
MLS 21-691192
545 S Calle Abronia
Palm Springs, CA 92264
Palm Springs
Multi Family
0 beds0 baths0 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$728,528
MLS
926 Cll Santa Cruz
Cathedral City, CA 92264
Whitewater
Single Family Residential
3 beds2 baths1,764 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$699,000
MLS 21-695278
2380 Tamarisk Rd
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds2 baths1,516 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$365,000
MLS 21-695816
1465 E Amado Rd
Palm Springs, CA 92262
Palm Springs
Condo/Coop
2 beds2 baths1,595 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
$950,000
MLS WS18099398
3760 EL Dorado Boulevard
Palm Springs, CA 92262
Palm Springs
Multi Family
beds baths0 sq.ft.
CAP RATE
Trad. 2.91%Airbnb N/A
$1,444,444
MLS TR21059282
920 E Chuckwalla Road
Palm Springs, CA 92262
Palm Springs
Multi Family
beds baths0 sq.ft.
CAP RATE
Trad. -1.47%Airbnb N/A
$1,444,444
MLS TR21059285
860 E Chuckwalla Road
Palm Springs, CA 92262
Palm Springs
Multi Family
beds baths0 sq.ft.
CAP RATE
Trad. -1.47%Airbnb N/A
Homes Below Median Price in the Palm Springs, CA Real Estate Market
$555,000
MLS OC21048897
2232 E Hildy Lane
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds2 baths1,218 sq.ft.
CAP RATE
Trad. 4.55%Airbnb 7.92%
$549,000
MLS 219057953
955 Alta Cresta
Palm Springs, CA 92262
Palm Springs
Single Family Residential
3 beds2 baths2,229 sq.ft.
CAP RATE
Trad. 4.35%Airbnb 7.76%
$925,000
MLS 21-708334
545 W Yorba Rd
Palm Springs, CA 92262
Palm Springs
Single Family Residential
4 beds4 baths1,389 sq.ft.
CAP RATE
Trad. 2.58%Airbnb 7.71%
$169,900
MLS 219059163
2700 Golf Club Drive #17
Palm Springs, CA 92264
Palm Springs
Condo/Coop
2 beds2 baths885 sq.ft.
CAP RATE
Trad. 7.59%Airbnb 7.67%
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
$103 per night
Entire home/apt · 1 bed
Casa Ponderosa
757
$302 per night
$195 per night
$389 per night
Palm Springs, CA Homes for Rent
$4,495
MLS 21-715928
434 Bird Song CIR
Palm Springs, CA
Palm Springs
Single Family
3 beds3 baths2,185 sq.ft.
$3,400
MLS 219059824
1141 Vista Sol
Palm Springs, CA
Palm Springs
Single Family
3 beds2 baths2,229 sq.ft.
$2,100
MLS 219059583
$2,200
MLS 21-712508
Palm Springs, CA Open Houses
Open 11 AM to 1 PM
$685,000
MLS 21-687314
2130 Southridge Dr
Palm Springs, CA 92264
Palm Springs
Condo/Coop
2 beds2 baths1,600 sq.ft.
CAP RATE
Trad. 0.99%Airbnb 1.01%
Open 12 PM to 3 PM
$855,000
MLS 21-691142
655 S El Cielo Rd
Palm Springs, CA 92264
Palm Springs
Single Family Residential
2 beds2 baths1,240 sq.ft.
CAP RATE
Trad. 0.55%Airbnb 0.57%
Open 12 PM to 3 PM
$445,000
MLS 219060138
1010 E Palm Canyon Drive #207
Palm Springs, CA 92264
Palm Springs
Condo/Coop
2 beds2 baths1,116 sq.ft.
CAP RATE
Trad. 1.55%Airbnb 1.58%
Open 12 PM to 2 PM
$1,049,000
MLS DW21027073
1615 Savvy Court
Palm Springs, CA 92262
Palm Springs
Single Family Residential
4 beds5 baths3,056 sq.ft.
CAP RATE
Trad. 1.42%Airbnb 5.95%
Best Palm Springs Neighborhoods for Buying Investment Property
81%
Mashmeter
property price
$419,000
Median
cap rate
7.31%
Traditional
17.87%
Airbnb
rental income
$2,552
Traditional
$6,239
Airbnb
homes for sale
229
occupancy rate
65%
Airbnb
All Palm Springs Neighborhoods