Palm Springs Rental Property Outlook: 2025
Navigating Success in Palm Springs' Rental Market
🌵 Palm Springs stays sunny—and so can your earnings.
With 14 years of local expertise, Open Air Homes crafts revenue‑boosting, 5‑star strategies for properties across Greater Palm Springs.
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By The Numbers: 2025
How We Outperform the Market
Our listings draw almost three times the impressions—153% higher— than comparable homes during May ’24 → Apr ’25, according to data collected through Airbnb.
High-impact photography, A/B-tested headlines, and dynamic pricing tools keep us locked above the fold, reaching travelers before they even start filtering.
Airbnb shows our homes on page 1 of search results 55.7% of the time, weighted across 12 months from April 2024 – April 2025.
That means every other guest search in our price bands starts with an Open Air Homes listing—boosting inquiries and brand awareness for every owner in the portfolio.
Out of every 10,000 search impressions, we convert 18 bookings versus the market’s 11—a 60 % uplift on Airbnb.
This efficiency turns views into paid nights, raises annual revenue, and shields owners from slow seasons when every inquiry counts.
Guests stay 9.7 days with us; the market averages 4.8 days according to “similar listings” in Airbnb Insights. That’s 102% longer than the market average.
Longer stays cut turnover costs, boost review volume, and reduce neighborhood churn, creating a sustainable growth loop.
Our Greater PS portfolio of homes booked 41% of available nights versus the cohort’s 37%, as compiled by Airbnb. Amid an oversupplied desert market, we are trending above the market, yet still have room for improvement.
Dynamic pricing, pet-friendly policies, and a focus on longer stays draw more value from every calendar without cutting rates on prime weekends.
Navigating PalmSprings' STR Regulations:
At Open Air Homes, we strategically secure longer stays through discounted rates, helping homeowners stay well within the permitted annual rental contracts and achieve high occupancy without relying on frequent short stays that negatively impact their occupancy limits.
- Palm Springs maintains a 20% cap on STR properties per neighborhood.
- Neighborhoods exceeding this cap require prospective STR hosts to join a waitlist.
- A streamlined online permitting portal now allows homeowners to manage and track their annual limit of 36 rental contracts per year easily.
Market Trends and Opportunities:
Since the boom in 2020, Palm Springs experienced a surge in property supply, leading to heightened competition and downward price pressure.
However, the market is gradually returning to equilibrium, offering a great opportunity for homeowners to reassess their strategies and reposition their properties for sustained success.
Property Size Matters:
Navigating Market Supply in Palm Springs
In Palm Springs’ competitive 2025 rental market, property size directly impacts your investment’s performance. Understanding the current supply can help you position your property strategically:
Total Active Rentals: 3,942 properties
- Five-Bedroom Homes: 416 properties (lower supply, premium nightly rates)
- Four-Bedroom Homes: 1,201 properties (moderate competition, popular with families)
- Three-Bedroom Homes: 2,134 properties (highest saturation, requires strategic pricing)
- Two-Bedroom Homes: 950 properties (medium saturation, ideal for couples/small families)
- One-Bedroom Homes: 682 properties (lower supply, niche appeal for solo travelers or couples, monthly rentals have more success)
At Open Air Homes, we analyze these insights to optimize your property’s visibility, pricing, and occupancy—ensuring success across every property type.
An Attractive Alternative
If your neighborhood has reached or exceeded Palm Springs’ 20% STR cap, Month+ rentals offer a profitable and fully compliant alternative:
- Growing demand from remote workers, digital nomads, and seasonal residents.
- Strong occupancy from October through May, with tailored pricing strategies.
- Legally secure—we manage rentals professionally using California Association of Realtors (CAR) forms, safeguarding your rights.
Important to Note:
From June to September, monthly rental demand significantly decreases. To maintain occupancy during these summer months, substantial rate reductions are necessary. Many homeowners choose to pause rentals during this period, but we can advise you on the best strategy for your specific home and goals.
Choosing Open Air Homes in Palm Springs Means:
Whether you’re looking to optimize your investment, reduce wear and tear with monthly stays, or find a balanced combination, Open Air Homes provides the knowledge and experience to help you succeed.
- Customized rental strategies designed specifically for your property.
- Expertise in local regulations, ensuring smooth permitting and compliance.
- Strategic occupancy management, emphasizing longer stays to maximize annual revenue.
- Flexible management options for both short-term and Month+ rental solutions.
Work with Local Experts
Luxury Vacation Rentals with a Boutique Feel
Our real estate brokerage partner, OpenAiRE Brokerage, provides specialized local insights, supporting your investment from property selection through ongoing management. By understanding Palm Springs’ unique market dynamics, OpenAiRE helps you make informed, profitable decisions.
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💬 Palm Springs FAQ
1. What is the 20% STR cap in Palm Springs, and how does it affect my property?
Palm Springs enforces a cap allowing only 20% of homes in each neighborhood to operate as short-term rentals (STRs). If your neighborhood has reached this limit, you’ll be placed on a waitlist or can consider a fully legal and profitable Month+ rental strategy with Open Air Homes.
2. How does Open Air Homes help my property stand out in a saturated market?
We use professional photography, A/B-tested listing headlines, and dynamic pricing to boost visibility—earning up to 153% more page views and 60% higher conversions than the average listing, according to recent Airbnb data.
3. Are monthly rentals still profitable during the Palm Springs summer season?
Summer (June–September) sees a drop in demand. We advise homeowners to reduce rates significantly or pause rentals during these months. Our team helps develop a seasonal pricing strategy tailored to your goals.
4. Can I co-host an existing Airbnb listing with Open Air Homes?
Yes. If you already have a listing, we can seamlessly transition into a co-host role, helping improve performance and guest experience without starting from scratch.
5. Is Open Air Homes compliant with Palm Springs’ rental regulations?
Absolutely. We stay up to date with all city regulations and manage Month+ rentals using California Association of Realtors (CAR) forms, ensuring you remain fully compliant and legally protected.
6. Which size homes perform best in Palm Springs?
Larger homes (4–5 bedrooms) command premium rates due to lower supply. One- and two-bedroom homes tend to perform better as monthly rentals, especially among solo travelers, couples, and remote workers.
7. What services are included with Open Air Homes' management?
We offer dynamic pricing, listing optimization, guest communication, compliance support, and occupancy strategy. Our boutique approach means your property receives hands-on attention from local experts.
8. How do I get started with Open Air Homes in Palm Springs?
Fill out the contact form on this page or schedule a 15-minute call with our CEO. We’ll review your property, assess its STR or Month+ potential, and guide you through next steps for onboarding.