Here’s the Top 5 drivers to help you figure it out:

• #1 driver is LOCATION, LOCATION, LOCATION which applies to all real estate investments! Palm Springs is an excellent, well established location and internationally known vacation spot.   It’s only 2 hours from LA and Orange County.  There is an airport in Palm Springs that Southwest services direct routes from Oakland.   For those traveling internationally, many other accessible airports like Orange County (SNA), Ontario (ONT), and Los Angeles (LAX) Airports.  This creates a huge pool of guests looking to rent a home for a getaway.
• #2 driver is possessing a UNIQUE IDENTITY BUT ALSO MASS APPEAL. Palm Springs is renowned for its history as the vacation destination for “Old Hollywood” back in the day, amazing sunny weather, beautiful Mid-Century Modern and Spanish architecture, relaxed vibrant downtown, and numerous activities (golf, tennis, concerts, casinos, pools, etc.).  Snowbirds from Canada and other states that have severe winters love to visit Palm Springs.
• #3 driver is having a SHORT TERM RENTAL FRIENDLY CITY GOVERNMENT. The City of Palm Springs knows that tourism is a huge percentage of the city revenue.  While most other Coachella cities have banned short term rental, Palm Springs knows that keeping it makes sense for the community.   They continue add more events and continue to invest and grow the downtown and surrounding areas.
• #4 driver is HOME AFFORDABILITY AND APPRECIATION. Many homes are still affordable in Palm Springs.  They continue to hold their value in tougher economic times and also has shown sustained appreciation.
• #5 driver is LOW MAINTENANCE COSTS. Palm Springs is a desert with no snow and hardly any rain.   This leads to very low on going maintenance costs.   The City’s main source of revenue is tourism so there are many service workers available which keeps competition high and costs of maintenance low.