Waterfront properties are at a premium, so it might be time to consider a desert town. Whether you’re looking for a vacation property, want to move full-time or are simply interested in an investment property, this could be a valuable opportunity.
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Of course, buying real estate is a major decision, so you’ll need to conduct plenty of research. Some factors to consider include average home prices, average rent prices and quality of life.
GOBankingRates spoke with real estate experts to get their opinions on buying desert real estate. Here’s what they had to say.
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Palm Springs Is on the Rise
Geoffrey Moore, a Realtor with Town Real Estate in Palm Springs, California, said it is definitely worth it to invest in property in the desert — and in Palm Springs, specifically.
“The entire Coachella Valley is big draw for people retiring and looking for a resort lifestyle,” Moore said. “It’s also a big draw for people who can work remotely and who want to get away from crowds and traffic.”
Consequently, he said prices in his area have been steadily increasing.
“The popularity of the desert communities in the Coachella Valley has pushed prices up over the years, and I don’t see that upward pressure on prices ending anytime soon,” he explained. “Rents are also quite high, as there are fewer rental properties than in most cities.”
Due to its history and mid-century architecture, he said Palm Springs is the main draw in the Coachella Valley.
“The price for a nice mid-century modern home now is over $1,000,000, which is up considerably from the days before the [COVID-19] pandemic,” he said. “The same home would have sold for $600,000 before the pandemic.”
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Desert Real Estate Prices Vary By Area
Tim Stassi, founder of Dwell One Realty, based in the Chicago area, said one of the main points of interest of desert towns is housing prices, which are typically lower than in major cities. He pointed to Phoenix as an example, where the median home price is $450,000.
He said that’s a lot more affordable than other cities. The median home price in New York, for example, is $807,718.
“Phoenix isn’t always simply low cost,” he said. “It’s developing hastily to its thriving tech and healthcare sectors.”
On the other hand, he noted that Palm Springs is a more expensive desert area.
“It is a haven for luxury,” he said. “Think holiday houses, retirement houses and short-time period rentals.”
If you’re interested in buying in a luxurious desert location, he said Palm Springs might be a good fit.
Potential Rental Income
If you’re thinking about buying a desert house to rent out, Stassi said this can serve as a regular source of income.
“In Las Vegas, for example, renting a room costs approximately $1,500 a month on average,” he said. “With all of the tourism and those shifting around, there’s no scarcity of calls for housing.”
The median home price in Las Vegas is $444,000.
“On the opposite hand, smaller towns like Tucson, Arizona provide low cost housing for buyers and renters,” he said. “A one-bed room condo costs around $1,250 a month.”
Tucson’s median home price is $340,000.
“With a combination of students, retirees and professionals, you’ll usually locate a person seeking to rent,” he said.
Ultimately, the choice of whether to buy property in a desert town is a personal one. While not all desert towns have affordable real estate markets, this is a benefit of many areas.
Just as you would with any other home, you’ll need to think about what you’d like from a potential desert property. This can help you decide on an area and determine if local housing prices — and other cost factors — fit your budget.
Editor’s note: Median home prices were sourced from Redfin and are accurate as of Jan. 15, 2025.
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This article originally appeared on GOBankingRates.com: Should You Invest In Real Estate Property in a Desert Town? Experts Weigh In
