As mortgage rates dipped to record lows and Americans stuck in lockdown were forced to work from home (and eager to escape the city) during the pandemic, the demand for second homes soared. After a few years of historically high demand and crazy high prices, the real estate market is cooling down, and new listings are appearing on the market—but the demand from travelers for private vacation rentals is still strong and steady.
Is buying a rental house in Palm Springs a good investment? Palm Springs, California, is a world-famous destination and is consistently ranked one of the best places to purchase a vacation house. With industry-specific data, due diligence, and a solid strategy, purchasing a Palm Springs investment property is a desirable investment.
The Country’s Rental Industry Is Booming
Despite the pandemic putting a halt on all domestic and international travel for far longer than anticipated, the vacation rental industry is thriving and expected to grow to $168.40 billion by 2026.
The pandemic changed the traditional landscape of the short-term rental industry. The hybrid work model and ability to travel at any time blurred the lines of seasonality, lesser-known markets near major cities began to boom, and travelers realized the value of renting a private Airbnb over a crowded hotel. In fact, Airbnb had its most profitable Q2 ever with 103.7 million nights and experiences booked—up 24% from Q2 2019.
Coachella Valley real estate is gaining the attention of many real estate investors and homeowners. If you’re considering turning your home into an investment property, diversifying your investment portfolio, or growing your inventory, 2022 is an excellent year to invest in Palm Springs properties!
The Greater Palm Springs Area Is a Trending Destination
When you search for the “Best Places to Travel in the USA,” you’ll almost always find Palm Springs on the list, and a search for the “Best Places to Invest in Real Estate” delivers the same results! Recognized as one of Airbnb’s top trending destinations, Palm Springs is appealing to investors and tourists.
Palm Springs is a great place to live with sunny skies, 100+ golf courses, desert hiking trails, natural spas, and classic old Hollywood glamor with a modern hippie twist. Palm Springs’s thriving tourism industry attracts over 14 million tourists annually. Significant events like LPGA and PGA Tours, BNP Paribas Open, Coachella and Stagecoach, and the Palm Springs International Film Festival draw thousands of visitors each year, and snowbirds love the warm weather in Palm Springs during the winter months!
The Greater Palm Springs area includes many cities in the Coachella Valley, including La Quinta, Palm Desert, Rancho Mirage, and Cathedral City. Rental demand, projected revenue, property taxes, and regulations differ in each market. Before deciding where to invest in Greater Palm Springs, you should conduct an in-depth analysis to determine which city is best for you. Investments never come with a guarantee, but getting expert advice from a professional before purchasing your property is always a solid start.
Is Airbnb Legal in Palm Springs?
As travel recovers and the demand for rentals grows, many destination markets are still struggling to find the balance between sustainable tourism growth and protecting the local community’s lifestyle. Stringent regulations are being put in place across the US to govern (or ban!) short-term properties—but do not be discouraged!
Palm Springs has already worked through the growing pains of short-term rentals and has well-established rules, regulations, and strict ordinances already set in place. You won’t have to worry about any hidden surprises. Savvy VRM’s guide to Understanding Palm Springs Airbnb Rules tells you how to rent smartly in Palm Springs.
Financial & Personal Rewards for Real Estate Investors
The Greater Palm Springs real estate market is fast-paced, robust, and competitive—40% of all homes sold in the Coachella Valley in 2021 were second homes, and buyer demand is strong!
Rental homes are a hot commodity in Palm Springs. The right house purchase will be a lucrative investment that will secure a steady flow of revenue, a high return on appreciation, and potentially even pay for itself! The personal reward? You have your own “home away from home” in Southern California to enjoy aside from your primary residence.
Palm Springs Real Estate Market Statistics
- Active Rentals: 4,410
- Average Occupancy Rate: 67%
- Average Daily Rate (ADR): $507
- Projected Revenue: $6,529
Read more statistics about rental income from Palm Springs properties.
Top Features of Palm Springs Short-Term Rental Properties
The best-performing Palm Springs rental properties have two things in common. First, they have a prime location in the city with easy access to restaurants, shopping, attractions, and public transportation.
They also have top-notch amenities that allow your guests to live an alluring lifestyle. Popular amenities include smart home features, kid-friendly equipment, charming private patios, dedicated workspaces, and outdoor kitchens where guests can enjoy the great weather. The more bells and whistles—the more rave reviews and rental income from your investment properties in Palm Springs, CA.
Hand Over Property Management for Your Short-Term Rentals to Savvy VRM
There’s more to managing a property than listing it on Airbnb. Vacation rental property management is time-consuming—staying competitive with pricing, marketing on multiple channels, greeting guests, property care and maintenance, managing all the costs, and much more behind the scenes.
Don’t be daunted by property management fees—every penny you spend is worth the price when you hand over the keys to the right property management company, like our team at Savvy VRM!
Savvy VRM is dedicated to your success. We make owning a rental property easy, fun, and profitable! Call us at (760) 227-5377 today, or click here to leave a message.