Home Prices Continue To Plummet Across This California City

Home value across Palm Springs continues to plummet as the city "cracks down" on short-term rental permits.

According to KTLA, after receiving a handful of complaints from residents, the city passed an ordinance nearly two years ago that restricted "short-term rental permits to no more than 20% of properties." The new rule was applied to all 66 of Palm Springs' neighborhoods. This presented a problem for a few of the city's most sought after neighborhoods including Racquet Club Estates which contained double the amount of short term rental properties permitted by the ordinance.

KTLA noted that many individuals sought property in Palm Springs during the pandemic in hopes of turning these homes into short-term rentals. Individuals who thought that they had cashed in on the investment opportunity of a lifetime soon found out that their home permits were non-transferable.

An unnamed YouTube personality told KTLA that a Palm Springs home that he payed $1.5 million for a few years ago is now only worth $1 million. Many locals are in favor of the ordinance as they believe that it is helping to "preserve neighborhoods" and "maintain the charm of the city." Some locals, however, think that the plummeting prices could negatively affect home value across the city in the long run.

Ten neighborhoods currently exceed the limit of short-term rental properties allowed by the ordinance.