Palm Springs, CA Airbnb Market Data: Revenue, Occupancy & ADR

The market’s core investment clusters are tightly defined by both product and geography. Three-bedroom homes—comprising 36% of supply—average $53,956 in annual revenue at a $492 ADR and 38% occupancy, offering a compelling balance of scale and liquidity. Four-bedroom properties push higher, with $78,033 average revenue and a $703 ADR, but maintain similar occupancy (38%), making them attractive for investors able to command premium nightly rates. The 92262 zip code, with 1,689 listings, leads on median annual revenue ($57,908), ADR ($498), and home value ($637,815), while 92264 (1,075 listings) offers slightly lower buy-in ($588,067 median home) and a higher median gross yield (9.4%). For tailored acquisition strategy, a Chalet agent can surface the most resilient segments.

For those seeking scale, the five-bedroom segment stands out with $112,466 average annual revenue and a $1,148 ADR, though occupancy moderates to 35%. These larger homes, while only 4% of supply, attract group bookings and longer stays, benefiting from Palm Springs’ event-driven demand. Investors with an eye on zip-level dynamics will note that 92262’s higher ADR and revenue are offset by a slightly lower gross yield than 92264, underscoring the trade-off between nightly rate and acquisition cost. The market’s 56% superhost share and 4.90 average star rating signal a competitive, quality-driven environment where operational excellence is rewarded.

The investor case at scale hinges on Palm Springs’ status as a drive-market destination for Southern California metros—Los Angeles alone accounts for 13.1% of guest reviews, with San Diego, San Francisco, and Seattle also prominent. International guests are a small but steady 5.7%. Booking lead times average 61 days (median 33), and average stays stretch to 6.1 nights, reflecting a mix of weekenders and week-long retreats. The market rewards operators who can optimize for seasonal peaks and shoulder periods—use the Chalet ROI calculator to model scenarios across property types and booking windows.

Risks are concentrated and transparent. Year-over-year, Palm Springs saw a 7.2% increase in revenue per listing, an 11.0% rise in occupancy, and a striking 17.2% jump in ADR, even as listing supply grew 3.8% and home values declined 3.8%. This ADR-driven growth is the market’s headline momentum, but the September trough (23% occupancy) remains a drag on annualized performance. Regulatory risk is non-trivial: Palm Springs enforces strict density caps, annual contract limits, and aggressive monitoring, with a three-strikes violation policy that can trigger multi-year permit suspension. For the latest compliance landscape, see Palm Springs STR regulations.