By Robin Plunket | March 16, 2026

One of the questions I get asked most often by clients considering a move to the desert is: Is Palm Springs still a good investment? After years of helping buyers and sellers navigate this market, my answer remains a confident yes, and here is why.

The Coachella Valley has always had something that most real estate markets cannot manufacture: scarcity. We are surrounded by mountains, federal land, and the kind of natural beauty that draws people from all over the world. You cannot build more Palm Springs. That fundamental reality continues to support property values even as the broader market adjusts.

A Market Finding Its Balance

Spring 2026 feels different from the frenzy of a few years ago, and that is actually a good thing. We are seeing a market that rewards preparation and patience rather than panic buying. Inventory has normalized, giving buyers room to breathe and make thoughtful decisions.

For sellers, this means pricing strategy matters more than ever. The days of listing high and waiting for multiple offers are behind us in most segments. But well-priced, well-presented homes are still moving, and moving well. I have seen several properties in the last few months sell within their first two weeks when the pricing was right.

What Makes Palm Springs Different

I think what sets our market apart from other resort and second-home destinations is the diversity of our buyer pool. We are not reliant on any single demographic or trend.

We have retirees who have been dreaming of desert living for decades. We have remote workers who discovered during the pandemic that they could live anywhere and chose here. We have international buyers, particularly from Canada and Europe, who see both lifestyle and value. And we have a growing number of younger buyers drawn to the mid-century modern aesthetic and the creative energy of the desert.

This diversity creates stability. When one buyer segment pulls back, others step in.

The Investment Case

Real estate investment is always about fundamentals, and the fundamentals here are strong. Consider what Palm Springs offers:

Limited supply: Geographic constraints mean new construction cannot flood the market. Every home here sits on land that is genuinely finite.

Year-round appeal: While we have always been known as a winter escape, the valley has evolved into a year-round destination. Events like Coachella, Modernism Week, and the growing food and arts scene keep the area vibrant beyond the traditional season.

Infrastructure investment: The region continues to invest in roads, amenities, and community spaces that enhance quality of life and support property values.

Rental income potential: For buyers considering investment properties, the short-term rental market remains viable for well-located, well-managed properties. Understanding local regulations is key, and I always encourage my clients to do their homework on this front.

Neighborhoods Worth Watching

Every pocket of the valley has its own character and trajectory. The Movie Colony and Tennis Club areas continue to attract buyers looking for walkability to downtown Palm Springs. Cathedral City has emerged as a value play with genuine appreciation potential. And the communities along the Highway 111 corridor from Rancho Mirage through La Quinta offer everything from golf course living to new construction.

One trend I find particularly interesting is the renewed interest in properties with views and privacy. Buyers are willing to pay a premium for homes that feel like a retreat, with mountain views and outdoor living spaces that take full advantage of our 300+ days of sunshine.

Advice for Buyers Right Now

If you are considering buying in Palm Springs, here is what I tell my clients:

Get pre-approved first. In this market, sellers want to know you are serious. A strong pre-approval letter sets you apart.

Think long-term. Do not try to time the market perfectly. Buy a home you love in a location that works for your lifestyle, and the investment will take care of itself over time.

Work with someone who knows the micro-markets. The Coachella Valley is not one market. It is dozens of micro-markets, each with its own dynamics. Having an agent who understands these nuances makes all the difference.

Do not skip the inspection. Desert properties have unique considerations: HVAC systems, pool equipment, landscaping irrigation. A thorough inspection protects your investment.

Looking Forward

I am optimistic about where our market is heading. The fundamentals that have always made Palm Springs special are not going away. If anything, the shift toward remote work, the desire for lifestyle-driven living, and the enduring appeal of the desert are stronger than ever.

For buyers and sellers alike, the key is working with professionals who understand this market deeply and can help you make informed decisions.

Robin Plunket
Pinnacle Realty Advisors
robin@propertyinpalmsprings.com

Thinking about buying or selling in Palm Springs? I would love to help you explore your options. Reach out anytime to start the conversation.