Should You Invest In Real Estate Property In A Desert Town? Experts Weigh In

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.

Find Out: If Interest Rates Are Going Down, What Will Mortgage Rates Look Like in 2025?

For You: How To Start Investing In real estate — Even If You’re Not Rich

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.

Next, check out some tips from real estate brokers for buying your first investment property.

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.”

Discover More: 25 Places To Buy a Home If You Want It To Gain Value

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.