If you’ve ever found yourself sitting poolside in 80-degree weather while the rest of the country is bracing for a blizzard, then you already know the magic of Palm Springs. But here’s the real question: is buying a home in Palm Springs still a smart move in 2025?
Spoiler alert: it absolutely is. But I’m not just saying that because I’m a Realtor here. Let’s unpack why this desert oasis remains one of the most desirable and undoubtedly strategic places to buy real estate in Southern California.
Why Palm Springs Is Still Hot (And We’re Not Just Talking Weather)
Palm Springs is having a movement. With year-round sunshine, architectural charm, a thriving LGBTQ+ community, and a small-town vibe that’s only two hours from L.A. and San Diego – the year-round appeal is evergreen.
In 2025, lifestyle migration is trending harder than ever. According to Redfin, over 30% of homebuyers nationwide are looking to relocate for better weather, lifestyle, or affordability. Palm Springs checks all three boxes.
Palm Springs Real Estate Market in 2025: Cooling Down or Just Right?
After the fever pitch of the 2021–2022 market, home prices in Palm Springs have leveled—but they haven’t crashed. The median home price in Palm Springs is hovering around $875,000 as of Q2 2025 according to Realtor.com Market Data. Compared to coastal California markets? That’s practically a steal.
And here’s the kicker: unlike major metros, Palm Springs isn’t overbuilt. Inventory remains relatively low, especially in sought-after neighborhoods like Deepwell Estates, Movie Colony, and Little Tuscany. That limited supply keeps demand (and values) steady.
Remote Work & Retirement: Why More Buyers Are Eyeing the Desert
Thanks to remote work, second-home living is the new dream. And retirees are ditching overpriced beach towns for the dry heat, mid-century homes, and vibrant culture of Palm Springs. Plus, California’s newly expanded solar tax credits and the city’s climate goals are drawing eco-conscious buyers into the mix, according to the California Energy Commission.
STRs & Passive Income: Is Palm Springs Still Short-Term Rental Friendly?
Short answer: yes, in many neighborhoods. While the City of Palm Springs has capped the number of short-term rental permits, permitted areas still offer lucrative potential for owners. In fact, a well-furnished mid-century home can gross $100,000+ annually on platforms like Airbnb or VRBO – especially during festival season.
Just make sure you’re working with a local expert (ahem) who knows the STR boundaries, HOA rules, and licensing requirements.
Palm Springs: Bang for the Buck
Beyond its retro aesthetic and year-round tourism appeal, this city is more of a lifestyle investment. Buyers here aren’t just purchasing property – they’re buying peace of mind, long-term desirability, and a higher quality of life.
It’s also one of the most LGBTQ+-affirming cities in the country. For many, Palm Springs offers something that’s become harder to find elsewhere: safety, inclusivity, and community.
The Takeaway: Should You Buy in Palm Springs in 2025?
2025 is a very strategic time to buy in Palm Springs. With interest rates stabilizing, price growth moderating, and lifestyle demand on the rise, the 2025 real estate landscape is favoring buyers who know where to look.
For a more complete Palm Springs Housing Market Overview, jump on over to my Desert Market Reports page and download the most recent Luxury Market Report and Desert Housing Market Report.
If you're craving sunshine, strong resale potential, or a smart income property – Palm Springs is calling. Whether you’re relocating full-time, buying your dream getaway, or looking for an investment with ROI that comes with a daily poolside happy hour – this desert gem is still worth every penny.
Curious about Palm Springs and our beautiful Coachella Valley surrounding desert cities? Check out my Living in Palm Springs California YouTube channel. From best neighborhoods to hidden gems to essential local resources for buyers & sellers, uncover the magic of Palm Springs and the Coachella Valley with me as I guide you through the ins-and-outs of our vibrant Southern California desert haven!
Still skeptical about moving to the desert? Check out my 10 Reasons You Should Never Move to Palm Springs (Wink, Wink!) for a more transparent (and sarcastic) look 😉
Would you consider relocating to Palm Springs in 2025? Why or why not? What other questions do you have?
Consider an experienced and knowledgeable local realtor (like me) to help you make sense of things.
If you’re ready to buy and/or sell yourself, I look forward to assisting you. I promise to give you a much more targeted answer than ChatGPT, Google or the news will.
Please feel free to give me a call, text, email me – or let’s schedule a Zoom meeting.
I’m looking forward to connecting with you!
Your Palm Springs Insider,
Glen Nadeau
📱 Call or Text: 805-220-8097
📨 Email: [email protected]
📅 Zoom: Click here and let's schedule it!
💻 Website: https://www.modernlivingpalmsprings.com
🔎My Google Business Reviews ⭐️⭐️⭐️⭐️⭐️
PS- Are you a part of the LGBTQ+ community and looking to relocate to Palm Springs and the Coachella Valley? Check out our FREE “Palm Springs Enthusiasts LGBTQ+ Relocation Guide” and find out why Palm Springs is such an oasis of Pride and inclusivity – brought to you by The Palm Springs Guys and Glen Nadeau Real Estate 🏳️🌈
*We cannot guarantee any of the above statements or third-party links. Before you enter any transaction, you should read and review all contracts, leases, and information as they are unique and subject to changes. We recommend you consult with your accountant, attorney, tax advisor, and local real estate professionals prior to any real estate transactions.
