Palm Springs Q1 Market Report 2025

realtors, Palm Springs, market reports

Palm Springs Q1 Market Report 2025

Published on Apr 29, 2025

Kevin Ogilvie

Regional Manager of Business Development

Dear Partners,

We hope you had a productive first quarter. We are excited to continue sharing our short-term rental data, along with our insight regarding how it applies to the Palm Springs market. This report provides an overview of Key Performance Indicator (KPI) trends for Q1 of 2025 vs Q1 of last year.

Report Sections

Market Overview

Market KPIs

Market Overview

The Palm Springs vacation rental market continued to show resilience in Q1 of 2025 despite broader economic uncertainty and shifting travel patterns. Visitor demand remained strong, buoyed by the city’s enduring appeal as a winter getaway, and its unique home architecture and design. While supply has only slightly increased, travelers continue to prioritize high-quality, professionally managed homes—especially in desirable locations.

Overall, Q1 revealed positive momentum across the major KPIs. Gains in Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) suggest that well-positioned properties are commanding strong returns. As travelers become more discerning, homes with premium amenities, thoughtful design, and exceptional service, are rising to the top.

Q1 2025 Key Performance Indicators

The Data

This data was sourced from 57 property managers with +/- 1,300 properties, all of which are located within Palm Springs city limits.

Average Daily Rate (ADR)

ADR: The Palm Springs market saw a solid 3% year-over-year increase in ADR for Q1 2025, reflecting ongoing demand for high-quality vacation rentals. This improvement in rate was primarily driven by the first two months of the year.

Market Occupancy

Occupancy: While March Occupancy dipped slightly compared to last year (72% vs 75%), January saw a strong recovery—up 7 points from 2024, suggesting that early-season bookings are strengthening.

Adjusted Revenue per Available Rental (RevPAR)

RevPAR, perhaps the most important KPI, increased to $250—a 5% year-over-year gain, signaling better monetization of available nights. RevPAR balances Occupancy with Rate, offering a more complete picture of how well a rental is performing.

Natural Retreats vs. Palm Springs Market – Q1 2025

Natural Retreats Vs Market Q1 2025 Palm Springs

Natural Retreats outperformed the broader market by over 55% in Adjusted RevPAR. This outperformance primarily represents the higher quality homes that Natural Retreats represents in the market. Being discerning about the inventory we bring on allows us to command a higher ADR than the market and deliver higher levels of services to homeowners and guests.

The Palm Springs market remains resilient, a benefit that enhances the value of vacation rentals for owners—especially those homes placed with expert property management companies. As a trusted local operator, Natural Retreats helps homeowners optimize both Occupancy and Revenue through dynamic pricing, luxury guest services, and hands-on home care.

Partner with Natural Retreats

We’re actively seeking partnerships with real estate professionals who want to offer added value to their clients. Whether your buyers are exploring vacation home investments or sellers who need a compelling income story, we’re here to help with:

Complimentary revenue projections
Pre-market rental assessments
Seamless onboarding for new homeowner clients
Consultation of current short-term rental regulations

Natural Retreats provides expert vacation rental management designed to drive returns and preserve property value. We're actively partnering with local agents to help buyers and sellers unlock the full potential of short-term rentals.

Learn More

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realtors, Palm Springs, market reports

Palm Springs 2024 Annual Market Report

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