Three-bed homes are everywhere: 2,134 active listings vs. just 416 five-beds. Add a 36-contract annual cap and you have downward pressure on nightly rates. Even so, our homes never dipped below 29% occupancy in the hottest months and peaked at 91% in February festival season.
We attribute the 11-point gap to strategies tuned for Palm Springs’ realities, not wishful pricing.
Palm Springs short-term-rental inventory exploded between 2020 – 2023, especially in the three-bed segment. The result? Oversupply, softer demand, and city regulations that cap STR density at 20% per neighborhood. Many hosts are hurting, and average occupancy has slipped.
In that environment our Palm Springs Airbnb occupancy rate of 41% may not look sky-high, but it is still 11% above the valley’s 37% benchmark.
Our goal with every Trust-Metric post is radical transparency: we share all data Airbnb gives us, not just the flattering bits. For a deeper dive into zoning caps, contract limits, and property-size saturation, see our companion page “Palm Springs Rental Market Outlook 2025.”
Inside Airbnb › Insights › Occupancy, each home is benchmarked against a cohort of similar listings—properties with matching bedroom count, core amenities, nightly-rate band, and a tight map radius. That side-by-side view is the basis of every percentage you see in our table.
Occupancy (%) = (Booked Nights ÷ Available Nights) × 100
Rolling Apr 2024 → Apr 2025
Because winter carries far more availability than the triple-digit summer, we weight each month by its open-night count before averaging. That blended math produces our headline Palm Springs Airbnb occupancy rate of 41%.
Each lever addresses an oversupply pain point, inching our portfolio ahead of the 37% market average.
More nights let us impose three-night minimums, filtering quick-hit party traffic that strains Palm Springs’ Good Neighbor rules.
Guests planning golf getaways or spa weeks stay longer and review higher, nudging the Palm Springs Airbnb occupancy rate up again. Continuous but measured turnover also keeps cleaners, pool techs, and landscapers on predictable schedules—reducing noise spikes and fostering goodwill with full-time residents.
A three-bed pool home at $525/night with 300 nights available books about 111 nights at the valley’s 37% rate, grossing $58,275.
At our 41% Palm Springs Airbnb occupancy rate, the same calendar books 123 nights—12 extra stays worth $63,525. Even after management fees, owners net roughly $4,200 more per year, proof that modest occupancy gains matter when supply is high.
We update the Palm Springs Airbnb occupancy rate every quarter—good month or bad—and pair it with ADR, RevPAR, and LOS on our Trust-Metrics page. Owners can verify performance, and prospects can judge whether our strategy fits their goals.
For granular forecasts, including Month-Plus rental scenarios for neighborhoods at the 20% STR cap, visit our Palm Springs Rental Market Outlook 2025 page or book a 15-minute call with our CEO directly from that resource.
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