Great Investment Property Areas: Palm Springs
If you’re one of the people who actually came out of the pandemic in a better financial position than you started it—congrats! You might be wanting to put some of that good fortune into an investment property so that your money can work for you and you can have some passive income.
But where should you buy an investment property? That’s the question, isn’t it? Personally, it’s always made sense to us to purchase an investment property somewhere you’d actually consider living. The financial future is never certain, and if you’re going to buy property, it might be nice to know that you could always live there if you needed and/or wanted to.
The good news: Housing market forecasts show the area around Palm Springs (yes, near where they host Coachella) is an excellent place to invest in property in 2022. Here’s why:
Palm Springs Is a Great Place To Live — For You Or Your Renters
While Palm Springs is known to many as a vacation destination, it’s also an excellent place to live year-round. The weather is always warm with minimal precipitation, there are great restaurants and shopping, and there are a bunch of new developments being built (for example, the new Downtown Park and the new Agua Caliente Cultural Plaza). While the population has been growing younger, Palm Springs is known as a retirement destination. So, if you want to invest in property now and live there once you retire, Palm Springs is a great option. Local investors are specifically investing in Palm Desert the most. Palm Desert is an area of the Coachella Valley that’s about 30 minutes from Palm Springs. It’s a bit more upscale, but the average detached home price is just $500,000 (compared to $822,500 in Palm Springs) and the annual growth rate is at 1.33%, according to openhousespalmsprings.com.
Airbnb Is Legal (And Thriving) In Palm Springs
Your property in Palm Springs will likely appreciate whether you live there or rent it out. The good news is that Airbnb is totally legal in Palm Springs, and it’s always tourist season when the weather is constantly sunny like it is in the Coachella Valley. Of course, there are some operating requirements, but you generally shouldn’t have trouble renting out your property (through Airbnb or another platform) if that’s your plan. Especially because the Coachella Valley is home to tons of music festivals (Coachella, Stage Coach, and many more), business retreats, and bachelor(ette) parties.
The Numbers Don’t Lie
If you’re a numbers person, check out these stats from walletinvestor.com:
The long-term profit potential in Palm Springs is +2.78% in one year
Home values are predicted to increase in the next 12 months
Median home values increased by 3.668% in the last year
The average sale price of a Palm Springs home will increase by 28.596% in the next 10 years