Palm Springs Short-Term Rentals: The 2025 Market Outlook
Few destinations capture the magic of the Coachella Valley like Palm Springs. Palm Springs short-term rentals are the key to experiencing its legendary mid-century modernism, vibrant arts scene, and iconic attractions like the Palm Springs Aerial Tramway. As investor interest climbs and travelers crave unique desert escapes, how is Palm Springs STR investing faring this year?
Quick Takeaways
- Over 3,200 active vacation rentals in Palm Springs
- 2024 average daily rate (ADR): $390
- Occupancy rates reach 68% in peak season
- Year-over-year (YOY) revenue up 6%
- Cancellation rates under 12%
- Tip: Invest in walkable, pool-access homes near Moorten Botanical Garden or the Palm Springs Art Museum
Market Growth & Regulations
Short-term rentals in Palm Springs have seen significant growth in occupancy and revenue, especially during festival season. New city regulations require hosts to register and maintain high standards for guests’ stays. Despite stricter rules, demand remains strong, with many investors choosing fully permitted properties.
Pricing Trends
Average daily rates (ADR) for Palm Springs vacation rentals rose to $390 in 2024, thanks to improved amenities and rising traveler demand. Competitive pricing during off-peak months is key for maximizing year-round returns and standing out on platforms like Airbnb.
StaySTRa Analyzer
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Occupancy & Seasonality
Peak season in Palm Springs aligns with popular events such as the Coachella Valley Music and Arts Festival. Investors see occupancy rates hit 68%, while shoulder seasons require creative marketing, flexible minimum stays, and targeting extended weekend travelers.
Investment Strategies
Maximizing returns from STR investing in Palm Springs means prioritizing location, licensing, and design. Properties with pools, mountain views, or close proximity to Downtown and major attractions yield the best ADR and occupancy levels. Pay close attention to local ordinances and focus on properties guests can picture themselves returning to again and again.
The Outlook: Reliable Returns & Community Commitment
Palm Springs short-term rentals offer stability and growth for dedicated investors who balance compliance and guest experience. Choose your property strategically, follow city guidelines, and invest in amenities guests love—a formula for long-term success in the desert.
Interested in learning more? Connect with local experts today or run your numbers with the StaySTRa Analyzer.
