Palm Springs, California Housing Market

What stands out in Palm Springs?

• 33.1% of homes are vacant: among the highest vacancy of 765 tracked cities. Tenants have choices. Budget extra vacancy.
• Prices were above the year before in 59% of months: among the least consistent price growth of 765 tracked cities. Price growth here is unreliable. Do not count on it.
• 19 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.

How far have Palm Springs prices fallen?

Asking price per square foot in Palm Springs is 26.9% below its May 2022 high and down 5.3% over the last year. Prices were above the year before in 59% of months since the data starts, so drops here have not always reversed quickly. 17% 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 Springs landlords?

The population in Palm Springs's ZIP codes fell 3.9% over five years. 33.1% of homes are vacant, higher than 97% of tracked cities. Households still grew 2.1% while the housing stock shrank 3.9%. Fewer people living in more households means rental demand has held up better than the population suggests. Check vacancy by ZIP before you buy.

Is now a good time to buy in Palm Springs?

The median asking price is 35.8% below its May 2022 peak. Per square foot the gap is smaller: 26.9% below the May 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 Springs prices rose in only 65 of the last 111 months. This market goes up and down. Timing matters here. Growth will not rescue a bad price.

There is no rush. Prices are still coming down. Watch the homes you like. Come back after they cut. Let the seller move first.

How much can you negotiate in Palm Springs?

For every 100 homes still for sale, 19 are under contract. In 2017–2019 at this time of year it was 48. 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 Springs listing has been on the market 74 days. There are 598 homes for sale in Palm Springs. That is 5.5 times the tightest month on record, but below the peak of 891. Supply is steady against last year.

What to do about it

• Search Palm Springs homes listed 90+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• Ask the seller to pay closing costs.
• You can lose a few offers here and still win.

How does Palm Springs compare with other California markets?

Ranked among the 141 California markets we track:

• Asking price: 52nd cheapest of 141. Palm Springs is at $667,526. Closest: Fontana and Lincoln.
• Buyer competition: 8th least competitive of 138. Palm Springs is at 0.19 buyers per home. Closest: Culver City and Twentynine Palms.
• Time on market: 5th longest time on market of 141. Palm Springs is at a median of 74 days on market. Closest: Rancho Palos Verdes and Newport Beach.
• Price cuts: 43rd fewest price cuts of 141. Palm Springs is at 17% of sellers cutting. Closest: Modesto and San Jose.

Who will rent from you in Palm Springs?

In Palm Springs, 34 out of every 100 households rent. Most own their home. The renter share is shrinking. Five years ago it was 39 in 100. Palm Springs lost about 1,200 renter households in five years. Renter households average 1.9 people. Singles and couples rent here. Two bedrooms beat four.

The median Palm Springs household earns $74,423 a year. Incomes here have grown 7.1% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 9.0 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 $1,861 a month.

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

What numbers should you underwrite a Palm Springs deal with?

• Price growth to assume — +0.6%/yr. Palm Springs grew 6.0% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Palm Springs grows about 0.6% a year. That is the number to type in. Prices fell 5.3% over the last year. Use it for timing. The five-year rate is the better guide.
• Months of carrying cost — 3. Budget at least 74 days of holding costs, the current median listing age, when you exit or refinance.
• Odds you cut your price to sell — 1 in 6. 17% of Palm Springs listings have cut their asking price. Underwrite your exit below asking.

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 Springs?

The median asking price in Palm Springs is about $668,000 as of Sep 2026, down 6.9% 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 Springs figures cover the 3 ZIP codes with a Palm Springs mailing address, which can reach past city limits.

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

Buyers have more room in Palm Springs than usual. We compare Palm Springs with 2017–2019 at this time of year: there are 19 pending sales per 100 listings, against 48 then; the typical listing has been up 25% more days; there are 22% more homes for sale.

Are Palm Springs home prices going up or down?

The median asking price is 35.8% below its May 2022 peak. Per square foot the gap is smaller: 26.9% below the May 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 is the best month to buy a house in Palm Springs?

Across 9 full years, Palm Springs asking prices ran lowest in January, about 2.2% below the year's average. They peaked in December. The most homes for sale show up in November, about 7% above the yearly average.

What price growth should I assume for Palm Springs?

Assume +0.6% a year. Palm Springs grew 6.0% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Palm Springs grows about 0.6% a year. That is the number to type in. Prices fell 5.3% over the last year. Use it for timing. The five-year rate is the better guide.

What is the fair market rent in Palm Springs?

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.