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Palm Springs, CA
Recently, an article came out from the LA Times stating, “Palm Springs capped short-term rentals. Now some home prices are in free-fall.” The free version of the article can be found online here.
It talks about a YouTube star named Luan Palomera who paid 1.5 million for his vacation home in Palm Springs stating “today, he’d be lucky to get $1 million for it.”
While the story of Luan Palomera might be accurate, the real truth on home prices in Palm Springs is a lot more complicated and in certain communities, doing quite well.
The article goes on to say, “As L.A. continues its crackdown on Airbnb, city officials can turn toward the desert for an example — perhaps a cautionary tale — of the potential side effects of curbing the short-term rental market.”
Recent History
On November 28, 2022, Palm Springs ordinance on short term rentals, Ordinance 2075, was amended and adopted with new rules stating that only 20% of residential dwelling units in an organized neighborhood will be allowed for vacation rentals.
The Palm Springs website gives a list of organized neighborhoods within city borders showing the percentage of total residential units that are currently registered vacation rentals.
If the neighborhood has over 20% of properties currently registered, (and there are more than a few, Psst! I have the list,) the Palm Springs website goes further in detail to show the current number of homes on the waitlist per neighborhood to potentially turn into a vacation rental.
There’s An Upside
Having the above information arms homebuyers with a better understanding of specific neighborhoods within the Palm Springs community.
It is possible to purchase a home for a short term rental and if your desire is to live in a neighborhood with a lower percentage of short term rentals in the current time then that information is there as well.
Realtors can help you do your due diligence on this and other crucial matters related to the home buying process.
This article is being sponsored by Eric Gray, a licensed Realtor in Palm Springs with Better Homes and Gardens Desert Lifestyle Properties, CA DRE 02225444
(Gov. Gavin Newsom signed SB 3182 that as of January 1, 2021 homeowner associations are prohibited from limiting rentals of more than 30 days to fewer than 25% of homes in the community. Pictured: Vibe Palm Springs.)
