There’s no shortage of travel buzz for this desert destination, either: exploring the great outdoors, dancing to live music, and hitting world-class fairways are just a few reasons over 14 million travelers visit every year — making Palm Springs a hot market for real estate investors looking to turn a profit, too.
To help you understand what a Palm Springs investment property can offer, we created a free downloadable vacation rental market analysis. Inside you’ll find:
The findings in this analysis are based on Evolve’s Palm Springs market averages in the last year and provide a general baseline for performance potential. They’re designed to help you make informed decisions when buying a vacation rental in Palm Springs.
With warm weather year-round and close proximity to Los Angeles and San Diego, the Palm Springs area provides a welcome escape for all kinds of travelers, giving vacation rental owners the opportunity for near-constant bookings.
That said, Palm Springs does see two high seasons annually. Demand hits its peak in early spring, as visitors from snowy corners of the country seek sunshine and festival-goers flock to Coachella. In summer, outdoor enthusiasts, weekend warriors, and families on school break steadily flood the area to enjoy the magic of this desert landscape.
It’s also worth noting that travelers gravitate toward the privacy and freedom a vacation rental offers; the city says approximately 600,000 visitors choose non-hotel accommodations each year. Between the undeniable general demand and the particular value of vacation rentals, the right Palm Springs investment property can capture high occupancy and solid income.
The median list price in Palm Springs proper hovers around $727,000 (having really shot up in the last year). But you can also find more affordable — or even more lavish — properties in neighboring towns. Those in the affluent Rancho Mirage near $900,000, while prices in Indio and Palm Desert sit at $545,905 and $597,717 respectively. And in Desert Hot Springs, a town on the edge of Joshua Tree National Park and only 20 minutes from Palm Springs, list prices are under $400,000. This means investors can uncover options across a broad budget spectrum, all of which have the potential to drive major profit.
Many travelers are seeking a home base for an annual getaway or weekend escape, so buying a vacation rental in Palm Springs could allow for repeat guests year after year. To maximize your earnings and gauge how valuable your home could be in the market, there are several factors to consider.
Three-bedroom homes see the most nights booked throughout the year and are the easiest to find in the area, as they account for the largest subset of available inventory. Five-bedroom homes bring in the highest revenue overall, but they make up the smallest percentage of Palm Springs inventory.
Splitting the difference gives investors the best of both worlds, with high rates, high occupancy, and solid inventory. Plus, Evolve’s top-performing home in the area is a four-bedroom investment property.
Our experts also say proximity to area attractions is key to capturing bookings. Look for homes close to downtown Palm Springs, in Indio for Coachella, or near Joshua Tree National Park to give travelers convenient commutes to top activities. Many coming to the area also want to frequent the endless fairways in Palm Desert, so homes near or on golf courses can be major money-makers, too.
With such a high influx of annual visitors and a preference for private accommodations, having the right in-home amenities is what it takes to make sure visitors choose your home over others — and leave five-star reviews.
To earn the attention of larger groups and families, be sure to up your home’s capacity with sleeper sofas and bunk beds. Offer kid-friendly additions like cribs and games to make traveling with little ones (and keeping them happy) a breath of fresh air in the desert heat.
And to make the most of that beautiful (but hot!) Palm Springs weather, provide outdoor living spaces that help travelers slip into their surroundings comfortably. Guests look for a private patio with shaded areas, a pool for cooling down, and a grill for barbecuing with loved ones. Back inside, air conditioning is a must-have.
With outdoor adventure, endless shopping, and iconic festivals at a traveler’s doorstep, the Palm Springs area invites year-round tourism with limitless earning potential for vacation rental owners.
No matter your personal and financial goals, we’ve crunched the numbers to help you make the most of a Palm Springs investment property. Download our full Palm Springs Vacation Rental Market Analysis to find:
Evaluating your investment opportunities shouldn’t leave you feeling stranded in the desert. Use our report to guide your next steps toward buying a vacation rental in Palm Springs, and propel your income potential to new heights.