When considering the best places to invest in real estate, Palm Springs is undoubtedly one city you should put into consideration. It is the third-largest city in California and provides a significant number of opportunities for real estate investors in return on investment and profits.
There are a few factors that real estate investors seek before investing in these assets. These include affordability, rate of return, population, job market growth, among others, just to name a few.
Palm Springs combines various factors that make it a perfect destination for investment. Here are some of the factors that you should consider to find homes for sale or if you are wondering Palm Springs real estate is a good investment.
Real Estate is relatively Affordable in Palm Springs
Despite the ridiculously expensive California real estate, Palm Springs is the best place for investors seeking median property price. The median property price in Palm Springs is $517,443 compared to the rest of the state, which is $693,000.
This means that Palm Springs real estate investment is feasible in such an expensive state market. It is also important to consider that property, and rental prices are rapidly increasing in the city, which means that the rate of return is also high.
Palm Spring Economy is Rapidly Growing
One of the key signs of a suitable area for real estate investment is its economic growth. Palm Springs’s economy grew by 2.2% in 2020, which was 0.6% higher than the national economic growth. Financial experts estimate that the city will experience such development for the next ten years.
This will result in exponential job market growth by about 30%, population increase, and, as you guessed, an increase in rental demand. This means that investing in rental housing in Palm Springs is a viable profitable investment.
Palm Springs Homes for Sale have High Appreciation Rate
Real estate appreciation is one of the few factors that indicate a suitable place for investment. Palm Springs is no exception to this fact as it had an expected 2.04% appreciation rate in 2019 and 3.6% in 2020. According to private lending company Hard Money Lenders IO, the appreciation rate is expected to increase by 0.6% in 2021.
This means that Palm Springs homes for sale have appreciated by 1.56% over the course of one year, which is something to consider. Real estate investors are advised to invest soon before property prices begin to rise as time goes by.
Airbnb Rentals are High in Demand
Palm Springs weather, coupled with other factors like job market growth and good economy, is why the city is an attraction for people from all over the country. Considering this, Airbnb is one of the city’s investment opportunities for real estate investors.
The average income from Airbnb rentals in Palm Springs is estimated to be $4,143, with an occupancy rate of 54%. Airbnb rentals are highly sought after in this city due to the high number of tourists that come here. Airbnb is completely legal in Palm Springs and is a suitable opportunity for anyone seeking to invest in vocational rentals.