Palm Springs

As of May 2026, Palm Springs, Joshua Tree, Indio, Palm Desert have 15,740 active Airbnb and VRBO listings. This represents a 5% decrease from the previous year.

The average Airbnb or VRBO in Palm Springs generates $61K per year. High-performing properties earn $188K/year, while low-performing properties earn $24K/year. This massive revenue disparity highlights a market where asset differentiation significantly outweighs base utility, suggesting that top earners are effectively capturing premium demand despite shrinking overall market revenue.

Average home prices in Palm Springs vary by property size: 1-bedroom properties cost approximately $232K, 2-bedroom homes average $348K, 3-bedroom properties are around $454K, and 4+ bedroom homes average $556K. These prices reflect median home values across the Palm Springs, Joshua Tree, Indio, Palm Desert area.

Airbnb and VRBO can be profitable in Palm Springs, with an average gross yield of 13% across all properties. High-performing properties achieve yields up to 39%, which is considered top for short-term rental investment. The wide gap between average and peak yields indicates that financial performance is highly sensitive to operational efficiency in a contracting supply environment.

The average occupancy rate for Airbnbs and VRBOs in Palm Springs is 31%. This occupancy level, combined with an average nightly rate of $479, results in a RevPAR (revenue per available room) of $132 per day.

4+ bedroom properties demonstrate the strongest performance in Palm Springs, with an average gross yield of 14% and annual revenue of $109K. These properties balance purchase price ($556K), operating costs, and rental demand most effectively in the Palm Springs market.

Short-term rental regulations vary by jurisdiction in the Palm Springs area. Palm Springs: Moderate. Business license required, TOT tax collection, zoning compliance. Standard enforcement with complaint-driven investigations. Joshua Tree: Lenient. Business license and TOT registration required. Minimal enforcement, many unlicensed operators continue. Indio: Moderate. Business license, TOT collection, 30-day minimum stay requirement. Moderate enforcement through complaints. Palm Desert: Strict. Prohibited in most residential zones since 2018. Active enforcement with fines, though some illegal operations persist. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Palm Springs Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 5% year-over-year, while RevPAR has decreased 5%. This indicates balanced supply-demand dynamics. The concurrent drop in both supply and revenue suggests that the market is adjusting to lower demand levels rather than experiencing a supply-driven saturation crisis.

Launch around January, 2-3 months before peak spring season (April peaks). This pre-peak timing lets you build reviews when competition is 51% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (August-September) when gaining traction is harder.

The most common amenities in Palm Springs listings include: Air Conditioning (98%), Kitchen (94%), Washing Machine (84%), Tv (80%), Pool (77%). Amenities that boost revenue the most include Pool, Air Conditioning, Washing Machine, with Pool properties earning approximately 64% more ($98K/year vs $60K/year).

Monthly estimated revenue per listing in Palm Springs over the last 12 months: May: $3K, June: $2K, July: $3K, August: $2K, September: $2K, October: $2K, November: $4K, December: $4K, January: $4K, February: $4K, March: $8K, April: $10K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Palm Springs is $479, up 10% year-over-year. By property size: 1-bedroom properties average $224/night, 2-bedroom properties average $307/night, 3-bedroom properties average $439/night, 4+ bedroom properties average $874/night. Rates peak in April and are lowest in September.

Guests in Palm Springs book an average of 40 days in advance, down 7% from last year. By property size: 1-bedroom: 31 days, 2-bedroom: 36 days, 3-bedroom: 40 days, 4+ bedroom: 48 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Palm Springs Airbnb and VRBO market has seen the following changes: supply declined 5%, revenue per listing decreased 5%, occupancy fell 12%, average nightly rates increased 10%, and lead time decreased 7%. These metrics reveal a shift toward shorter booking windows and higher price sensitivity, forcing a re-evaluation of revenue strategies amidst declining utilization.

In Palm Springs, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Saturday and are lowest on Tuesday. Weekends show 64% higher occupancy than weekdays.