Palm Desert, California Housing Market

What stands out in Palm Desert?

• 16 homes are under contract for every 100 still for sale: among the fewest homes under contract per listing of 584 tracked cities. Demand is light. Your offer may be the only one.
• 32.3% of homes are vacant: among the highest vacancy of 765 tracked cities. Tenants have choices. Budget extra vacancy.
• Asking prices swing about 3.9% between the cheapest and priciest months: among the flattest seasonal prices of 765 tracked cities. The month you buy matters little here.

How far have Palm Desert prices fallen?

Asking price per square foot in Palm Desert is 12.8% below its Apr 2022 high and down 3.7% over the last year. Prices were above the year before in 76% of months since the data starts, so this market has climbed back from drops before. 13% of sellers have cut their price. Underwrite with no price growth for now and let the seller carry the next cut.

What does a shrinking population mean for Palm Desert landlords?

The population in Palm Desert's ZIP codes fell 1.8% over five years. 32.3% of homes are vacant, higher than 97% of tracked cities. Households still grew 0.1% while the housing stock shrank 7.4%. Fewer people living in more households means rental demand has held up better than the population suggests. Check vacancy by ZIP before you buy.

How much can you negotiate in Palm Desert?

For every 100 homes still for sale, 16 are under contract. In 2017–2019 at this time of year it was 34. The rest are still waiting for a buyer. Few sellers are dropping their price. Your discount will come from one stale listing.

The typical Palm Desert listing has been on the market 70 days. That is 15% shorter than a year ago. There are 575 homes for sale in Palm Desert. That is 5.8 times the tightest month on record, but below the peak of 1,085. Supply is steady against last year.

What to do about it

• Judge each listing on its own.
• Homes listed 90+ days ago with a price cut are where your discount is.
• Fresh, well-priced homes will not move on price. Do not waste offers on them.

Is now a good time to buy in Palm Desert?

The median asking price is 20.4% below its Apr 2022 peak. Per square foot the gap is smaller: 12.8% below the Apr 2022 high. Part of the drop is smaller homes coming to market. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. Palm Desert prices have risen in 84 of the last 111 months. Drops here have been short and shallow. Buying in a slow month has rarely hurt a long hold.

This market is turning. Which way is not settled yet. Check the monthly numbers above before you commit.

Who will rent from you in Palm Desert?

In Palm Desert, 32 out of every 100 households rent. Most own their home. The renter share is shrinking. Five years ago it was 33 in 100. Renter households average 2.1 people. Singles and couples rent here. Two bedrooms beat four.

The median Palm Desert household earns $79,015 a year. Incomes here have grown 5.6% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 6.8 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. At 30% of income, a tenant on the median income can pay about $1,975 a month.

To see what one Palm Desert address would rent for and cash flow, run it through the app.

When do Palm Desert prices dip?

Across 9 full years, Palm Desert asking prices ran lowest in August, about 1.8% below the year's average. They peaked in November. The most homes for sale show up in January, about 11% above the yearly average. Shop in January for choice, and expect the softest asking prices in August.

What numbers should you underwrite a Palm Desert deal with?

• Price growth to assume — +1.0%/yr. Palm Desert grew 5.4% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Palm Desert grows about 1.0% a year. That is the number to type in. Prices fell 3.7% over the last year. Use it for timing. The five-year rate is the better guide.
• Months of carrying cost — 3. Budget at least 70 days of holding costs, the current median listing age, when you exit or refinance.
• Odds you cut your price to sell — 1 in 8. 13% of Palm Desert listings have cut their asking price. Underwrite your exit below asking.
• Comp on price per square foot — $339/sqft. The typical Palm Desert listing shrank from 1,809 to 1,657 sqft since Jul 2016. So median price hides real growth: 70% per sqft versus 54% on the median. Comp on median price and you will overpay for small homes.

Read how price cuts signal a market turning and how we read these numbers, then run the numbers on a deal.

What is the median home price in Palm Desert?

The median asking price in Palm Desert is about $538,000 as of Sep 2026, down 7.6% from a year ago. This is the asking price on homes listed for sale. Sites that report sold prices or estimated home values will show a different number. Our Palm Desert figures cover the 4 ZIP codes with a Palm Desert mailing address, which can reach past city limits.

Is Palm Desert a buyer's or seller's market in 2026?

Neither side has the upper hand in Palm Desert right now. We compare Palm Desert with 2017–2019 at this time of year: there are 16 pending sales per 100 listings, against 34 then; 13% of sellers have cut their price, against 17% then; the typical listing has been up 13% fewer days.

Are Palm Desert home prices going up or down?

The median asking price is 20.4% below its Apr 2022 peak. Per square foot the gap is smaller: 12.8% below the Apr 2022 high. Part of the drop is smaller homes coming to market. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What price growth should I assume for Palm Desert?

Assume +1.0% a year. Palm Desert grew 5.4% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Palm Desert grows about 1.0% a year. That is the number to type in. Prices fell 3.7% over the last year. Use it for timing. The five-year rate is the better guide.

What is the fair market rent in Palm Desert?

HUD's fiscal year 2026 fair market rent for Riverside County is $2,201 a month for 2 bedrooms and $2,912 for 3 bedrooms. The figures include tenant-paid utilities and cover the whole county.