With year-round sunshine, a thriving tourism scene, and strong demand for rental properties, Palm Springs continues to stand out as one of California’s most attractive real estate markets. Whether you’re a seasoned investor or looking to purchase your first income property, 2025 is shaping up to be a smart time to invest. Here are the top five reasons why.
1. Strong & Steady Rental Demand
Palm Springs isn’t just a popular vacation destination, it’s a lifestyle. The area draws seasonal snowbirds, remote workers, and long-term renters seeking warmth, luxury, and convenience.
In 2024, the average rental occupancy rate remained above 75%, with peak season months nearing full capacity. That steady demand translates into consistent income for property owners.
Pro Tip: Properties with pools, modern upgrades, or mountain views see even higher demand.
2. Tourism is Thriving, and So Are Short-Term Rentals
Palm Springs welcomes over 1.6 million visitors annually, and tourism is expected to keep growing in 2025 with events like Coachella, Modernism Week, and the International Film Festival.
Vacation rentals are a huge part of the hospitality ecosystem, especially for travelers looking for a more private, resort-style experience. When managed professionally, short-term rentals can yield higher income per night compared to traditional long-term leases.
Note: Be sure to stay compliant with local vacation rental regulations, McLean Company can help with that.
3. Property Values Continue to Appreciate
Even with market fluctuations across California, Palm Springs has maintained solid long-term appreciation. In fact, the median home price has increased nearly 30% over the last five years.
This makes it a great time to purchase property before prices climb even higher in the years ahead.
📈 Real estate in Palm Springs is more than a rental, it’s a long-term asset.
4. Tax Advantages for Investment Property Owners
Owning a rental property offers access to valuable tax deductions, including:
- Mortgage interest
- Property taxes
- Depreciation
- Repairs and maintenance
- Management fees
If you’re planning for retirement or building a real estate portfolio, these tax benefits can significantly improve your net returns.
📣 Always consult your CPA to understand what deductions apply to you.
5. Desirable Lifestyle & Growing Relocation Market
Palm Springs isn’t just for weekend getaways, it’s increasingly popular with remote workers, retirees, and second-home buyers.
With its unique blend of architecture, wellness culture, golf courses, and outdoor activities, the area continues to attract a high-income tenant base. That makes it easier to find responsible renters and build a reputation as a great landlord.
Make Your Next Investment in Palm Springs with Confidence
Palm Springs real estate offers strong returns, long-term appreciation, and year-round rental opportunities, but maximizing those benefits takes local knowledge and proactive management.
At McLean Company, we’ve helped property owners in the Coachella Valley maximize their income and protect their investment for over 35 years.
