Is Buying a Home in Palm Springs Still Worth It Heading into 2026?
Palm Springs has always been a desert dream—famous for its endless sunshine, mid-century charm, and resort-style living. Its blend of laid-back luxury, artistic culture, and proximity to Los Angeles continues to attract everyone from retirees and second-home seekers to digital nomads and investors.
But as 2025 winds down and market conditions continue to evolve, many are asking the same question:
Is buying a home in Palm Springs still worth it heading into 2026?
The short answer: Yes—if you buy smart and know what you’re looking for.
Let’s explore what’s happening in the Palm Springs housing market right now, what’s driving buyer interest, and what to consider if you’re planning to make a move in the coming year.
Why Palm Springs Continues to Shine
Even as national real estate trends shift, Palm Springs remains one of the most resilient and desirable markets in Southern California.
Here’s why:
Over 300 days of sunshine make it perfect for outdoor living, poolside relaxation, and year-round recreation.
Vacation rental demand remains strong—especially during events like Coachella, Stagecoach, and Modernism Week.
Mid-century modern architecture and mountain views offer timeless appeal and high resale value.
Proximity to LA, San Diego, and Orange County makes it a quick and convenient getaway for urban professionals and weekend travelers.
Palm Springs isn’t just a place to live—it’s a lifestyle and an investment in quality of life.
Want to learn more about what makes desert living so special? Read our Palm Springs Lifestyle Guide.
Palm Springs Real Estate Market Update: Late 2025
As of late 2025, the Palm Springs real estate market has entered a more balanced phase:
Home prices have leveled off after several years of rapid appreciation, offering buyers more breathing room.
Inventory has improved, giving buyers more choices and reducing bidding wars.
Interest rates remain a consideration, but many lenders are offering creative financing solutions such as temporary buydowns or adjustable-rate mortgages.
Growth in surrounding cities like Cathedral City, Desert Hot Springs, and Palm Desert is creating new opportunities at more affordable price points.
It’s no longer a frenzied seller’s market—but it’s far from a slowdown. Buyers now have the upper hand when it comes to negotiation and options.
For a closer look at pricing and trends, check out our Palm Springs Market Update: September-November 2025.
Pros of Buying a Home in Palm Springs
1. More Affordable Than Coastal Markets
Compared to Los Angeles or San Diego, Palm Springs still offers luxury living at a lower cost per square foot.
2. Strong Short-Term Rental Potential
With proper permits, homes in vacation zones can generate strong seasonal income through platforms like Airbnb and Vrbo.
3. Long-Term Value and Appreciation
Palm Springs’ enduring lifestyle appeal helps stabilize property values even when national trends fluctuate.
4. New Developments and Modern Amenities
New construction across the Coachella Valley means buyers can find energy-efficient homes with the latest design trends.
Want to see where buyers are investing? Explore our Neighborhood Guides Collection.
What to Watch Out For
Insurance and Maintenance Costs
The desert climate can be tough on roofs, air conditioning systems, and landscaping. Budget for ongoing upkeep.
HOA Rules and Fees
Many communities include shared amenities and strict short-term rental regulations. Review the HOA bylaws before purchasing.
Short-Term Rental Regulations
Rules vary by city. Palm Springs, La Quinta, and Desert Hot Springs each have specific permitting requirements.
Summer Heat
From June through September, triple-digit temperatures are common—something to consider for full-time residents.
Thinking about when to list or buy? Compare Summer vs. Fall Selling in Palm Springs for seasonal insights.
Who’s Buying in Palm Springs Now
The buyer mix heading into 2026 is more diverse than ever:
Retirees seeking a sunny, low-maintenance lifestyle.
Remote professionals relocating for affordability and better work-life balance.
Investors looking for reliable rental income and long-term appreciation.
Younger buyers and families are discovering the desert’s growing amenities, schools, and recreation.
Palm Springs is no longer just a retirement town—it’s a multi-generational community with vibrant growth.
Smart Buying Tips for 2026
Work with a local expert. A Palm Springs-based agent can help you navigate neighborhood nuances and local regulations.
Explore emerging areas. Desert Hot Springs and Cathedral City continue to attract first-time buyers and investors alike.
Get a full inspection. Desert conditions can impact plumbing, HVAC, and roofing.
Research rental ordinances. Make sure your property goals align with local short-term rental rules.
Watch the market seasonality. Inventory and pricing trends often shift after peak event seasons.
If you're a first-time homebuyer, you might also like: 12 Real Estate Terms Every First-Time Buyer Should Know.
So, Is It Still Worth It?
If you’re seeking a unique lifestyle, long-term growth, and flexible investment potential, Palm Springs remains one of California’s most rewarding real estate markets.
The buying landscape in late 2025 is calmer, smarter, and more balanced—creating the perfect opportunity for thoughtful buyers to make a move before the next market upswing.
Buy Confidently with Platinum Star Properties
At Platinum Star Properties, we help buyers navigate the Palm Springs real estate market with expert insight, personalized guidance, and a client-first approach.
Whether you’re looking for your forever home, a weekend getaway, or an investment property, our team is here to make your buying experience seamless and rewarding.
Contact Platinum Star Properties today to start your personalized home search and discover why Palm Springs continues to be a smart move heading into 2026.
Your desert dream home is waiting—let’s go find it together.