Economic Report: Desert Hot Springs’ Path Toward Sustainability and Growth

Affordability and diversity drive the “spa city” toward a sustainable future.

October 5, 2024
Guests at Azure Palms enjoy the healing power of the natural mineral spring water pools — and the calming view of majestic Mount San Jacinto.
Guests at Azure Palm Hot Springs Resort & Day Spa Oasis enjoy the healing power of the natural mineral spring water pools — and the calming view of majestic Mount San Jacinto.
PHOTO COURTESY DESERT HOT SPRINGS

Desert Hot Springs — California’s “Spa City” — is experiencing an exciting economic transformation. A tourism hub that derived its name from the area’s abundance of natural hot springs, the once-small town has a history of attracting visitors who seek sun and fun. However, in addition to rest and relaxation at luxurious spas and boutique hotels, Desert Hot Springs is attracting high-profile businesses and offering an abundance of jobs and affordable housing possibilities, making it a desirable place to live and work as well as a vacation destination.

“The City of Desert Hot Springs offers outstanding development opportunities, attractive and affordable housing options, and a growing population that is excited about so many new places to shop, dine, and play,” says Deputy City Manager Doria Wilms. “Our priorities for the past several years have been focused on economic growth — and we are seeing it throughout the city.”

 


MAYOR: Scott Matas
MAYOR PRO TEM: Jan Pye
COUNCIL MEMBERS: Russell Betts, Gary Gardner, Roger Nuñez
YEAR INCORPORATED: 1963
 Swiss Canyon Trail offers a cool, 2.4-mile canyon hike;

Swiss Canyon Trail offers a cool, 2.4-mile canyon hike.

Culture, Hospitality, and Economic Growth

Located off the bustling Interstate 10 logistics corridor, Desert Hot Springs last year approved a 650,000-square-foot Amazon facility — a boon to revenue as well as employment. Amazon estimates it will offer approximately 1,400 jobs at build-out.

The lot adjacent to the new Amazon facility will likely break ground later this year, offering additional warehousing facilities and more jobs for residents.

Meanwhile, the city’s spa revitalization incentive program is encouraging properties to invest in upgrade and renovations that will be a vitamin to the city’s tourism and hospitality industry. Residents and visitors seeking respite and rejuvenation can find a bounty of amenities at destinations such as Azure Palms, offering natural mineral spring water pools with a view of the majestic Mount San Jacinto as well as four indoor and outdoor spa pools, a sauna, a full-service day spa, and a café.

Historic and popular Two Bunch Palms presents another enticing experience. Nestled within 77 acres of lush palm groves, the legendary oasis has been attracting visitors to its mineral-rich hot springs for centuries — first as the home of a Native Cahuilla tribe, which named the springs thousands of years ago, and as a full-service modern retreat offering healing body treatments and transformative workshops for the wellness set.

Visitors can also soak up culture at the incredible Cabot’s Pueblo Museum, a unique treasure located in the heart of Desert Hot Springs. The pioneering adventurer and artist Cabot Yerxa built the multistory, Hopi-inspired pueblo with reclaimed and found objects — windows and doors collected and reassembled from abandoned homesteads, old telephone poles, and buck board wagon parts — on property he homesteaded in 1913. Today, it serves as a museum, filled with Native American art and artifacts, souvenirs of Cabot’s travels around the world, and Cabot’s own works of art.

the city is installing 80 EV charging stations at public facilities.

The city is installing 80 EV charging stations at public facilities.

Desert Hot Springs is also a hub for the local cannabis industry and a leader in cannabis tourism. The city has codified for cannabis lounges in hopes of attracting business owners interested in creating fresh options for the robust demand.

“We’re looking for business owners to look at the tourist side of that,” says Desert Hot Springs Mayor Scott Matas. “Does that mean a hotel, does it mean tasting rooms, does it mean walking tours? We’re going to hear what they have to say and see if we can build interest.”


city stats

Population

33,451

Median Age

34.7

Annual Growth Rate

0.75%

Bachelor’s & Graduate/Professional Degree

16.06%

Average Household Income

$67,309

Average Disposable Income

$54,964

Total Housing Units

11,940

Average Home Value

$503,220

Diversity Index

84.8

Public Schools

8

Public Parks

8

Source: Esri/Coachella Valley Economic Partnership


Safe and Affordable

Desert Hot Springs is one of the fastest growing and most diverse cities in the Coachella Valley. The city’s ample housing options and low crime rate attract families and individuals of all ages and backgrounds. Approximately 400 new homes are under construction in the city, and hundreds more are in the planning stage.

“Desert Hot Springs is the only city in the Coachella Valley to qualify for USDA home loans,” Wilms says. “That means prospective home buyers can qualify for an amazing zero-down loan you can’t get elsewhere.”

 Friday Nights on Pierson is about food and festivities

Friday Nights on Pierson is about food and festivities. 

Residents also enjoy the city’s many amenities, including events such as Friday Nights on Pierson, where they meet friends and neighbors for live music, tempting food trucks, and other festivities, and the city’s 18 hiking trails.

A new public safety campus and a new fire station are also coming soon.

Planning for a Healthy Future

Desert Hot Springs has implemented a variety of sustainability initiatives, ranging from water conservation to solar power.

Among the city’s water conservation measures include the use of drought-tolerant landscaping and the promotion of water-efficient appliances. These efforts reduce consumption and help protect the natural springs.

In addition to water conservation, the city’s use of renewable energy is reducing its carbon footprint. Many homes and businesses have installed solar panels, contributing to the city’s overall energy sustainability, and the city is installing 80 EV charging stations at public facilities throughout the community, including at city hall, all city parks, the corporate yard, the future public safety campus, and the health and wellness center, providing 160 parking stalls for charging electric vehicles. The shift toward renewable energy not only helps adapt to climate change but also reduces energy costs for residents and business owners.

 the city’s Recreation Center provides accessible, affordable enrichment and recreation for youth and families

The city’s Recreation Center provides accessible, affordable enrichment and recreation for youth and families.

The city and local organizations host workshops and events to educate residents and promote engagement in sustainable practices, such as recycling, composting, and energy conservation. By creating a culture of sustainability, Desert Hot Springs aims to become a resilient community that will thrive amid the challenges of the desert environment.

Desert Hot Springs is a forward-looking city, demonstrating growth and innovation across almost every industry sector — a perfect time to come and be part of the city’s success.

SHARE THIS STORY