Why Investors Are Choosing Palm Springs for Real Estate Deals in 2024

If you're looking for a real estate market that offers high rental demand, strong appreciation, and year-round investment opportunities, Palm Springs and the greater Coachella Valley should be on your radar. As an active investor and real estate professional in this market, I’ve seen firsthand why so many investors—both new and seasoned—are making moves here.

Whether you’re considering short-term rentals (STRs), long-term rentals (LTRs), fix-and-flips, or even small multifamily properties, there are plenty of ways to make money in this desert oasis. Here’s why Palm Springs remains a hot investment spot in 2024.

1. The Short-Term Rental Goldmine

Let’s get straight to one of the biggest reasons investors love Palm Springs: Airbnb and VRBO-friendly regulations (in many areas).

Palm Springs is one of the most established short-term rental markets in the country, with visitors flocking here for year-round sunshine, festivals like Coachella and Stagecoach, and the mid-century modern lifestyle.

• Palm Springs has STR-friendly laws (but with permit caps). Neighboring cities like Cathedral City and La Quinta have different rules—some allow STRs, some don’t, so knowing the regulations is key.
• Properties in golf course communities, resort-style neighborhoods, and mid-century enclaves fetch premium nightly rates.
• Occupancy rates remain strong, even in slower seasons, due to the area’s popularity for snowbirds, golfers, and weekend getaways.

Pro tip: Investors are finding great STR opportunities in areas like Desert Hot Springs and Indio, where regulations are looser, and property prices are still reasonable compared to downtown Palm Springs.

2. Year-Round Tenant Demand for Long-Term Rentals

If you’re more into steady, long-term rental income, Palm Springs has that too.

• Snowbirds and retirees drive seasonal demand, often renting for 3-6 months at a time during the winter.
• The local workforce, including hospitality, healthcare, and remote workers, creates a stable year-round rental pool.
• Rents have steadily increased over the last five years, making cash flow better than many other California markets.

Desert Hot Springs, Cathedral City, and Indio are some of the best spots for LTR investors because you can buy at a lower price point and still command strong rents.

3. Home Prices Still Have Room to Run

Palm Springs isn’t cheap, but compared to other high-demand California markets, it’s still relatively affordable.

• Median home prices are lower than coastal SoCal markets like San Diego or Orange County.
• Investors can still find deals on fixers, mid-century moderns, and off-market properties.
• Appreciation has been steady—not wild spikes and crashes like in some markets.

With continued migration from LA and San Francisco (especially among retirees and remote workers), prices should continue trending upward.

4. Fix-and-Flip Potential Is Strong

Flippers are thriving in Palm Springs, thanks to:

• A huge demand for well-renovated mid-century modern homes. Buyers are willing to pay top dollar for stylish, updated properties.
• Boomer homeowners downsizing, meaning many outdated homes are hitting the market.
• Desert Hot Springs, Cathedral City, and Indio still offer affordable fixer-uppers, where investors can add value through renovations and resell for strong profits.

I personally love flipping in Palm Springs proper and Rancho Mirage, where high-end buyers are looking for luxury, but I also see major opportunity in emerging areas like Desert Hot Springs and Thousand Palms.

5. The Coachella Valley is Growing

The Coachella Valley isn’t just Palm Springs—it’s a cluster of booming desert cities. Investors looking at the bigger picture will see that the entire region is on an upswing:

• New luxury developments and resort expansions are bringing more tourism dollars.
• The Disney Cotino community is under construction in Rancho Mirage, adding huge appeal to the area.
• Tech and healthcare companies are expanding, bringing more high-income renters and buyers.
• Infrastructure improvements, like the CV Link bike path and airport expansions, are making the valley more connected than ever.

Why Palm Springs is STILL a Great Market in 2024

If you're an investor considering Palm Springs, here’s the bottom line:

✅ Multiple ways to invest (STRs, LTRs, flips, new builds)
✅ High rental demand & strong appreciation potential
✅ Affordable compared to other California markets
✅ Booming local economy & growing buyer pool

There are a lot of ways to make money here, whether you’re looking for passive income or active flipping opportunities. If you want local insights, off-market deals, or help navigating the STR rules, feel free to reach out—I’m happy to share what’s working for investors in 2025!