Since Hollywood’s Golden Era, when stars such as Bob Hope and Frank Sinatra flocked to the desert, the Coachella Valley has beckoned visitors to escape to the serenity of its glistening swimming pools and breathtaking mountain vistas. 

Over the years, the miles of lush fairways and scenic open spaces have been joined by vibrant events and attractions, luxurious resorts and spas, world-class culinary and retail experiences, and a growing year-round resident population. With that growth has come significant quality-of-life and economic benefits for residents, as well as the challenges of expanding infrastructure to meet demand.

Visitors’ growing interest in and access to short-term rentals has also presented opportunities and challenges for the cities of the Coachella Valley. All of the cities have committed extensive time, research, community input, and hard work over the years, resulting in ordinances that strive to ensure vacation rentals are regulated, operate harmoniously, and maintain the quality of life within their neighborhoods.

The Living Desert Zoo and Gardens in Palm Desert and Indian Wells.

As a result, short-term rental activity supported $1.1 billion in economic impact in 2023 alone, and more than 4,500 local jobs, both directly (property management, maintenance, housekeeping) and indirectly (restaurant, retail, and attraction employees), according to a study from Tourism Economics, an Oxford Economics Company, in 2024.

The transient occupancy tax (TOT) that short-term rental guests pay helps fund public services and amenities — including public safety, well-maintained roads, and excellent parks and schools — that residents would otherwise have to shoulder themselves via higher taxes. It’s no surprise that 72 percent of the local population described themselves as pro-vacation rental in a survey commissioned by Visit Greater Palm Springs, the region’s official tourism marketing agency.

During the population swell of peak season, the marketplace often falls short of the traditional hotel accommodations needed for the influx of visitors. Vacation rentals boost capacity, ensuring the Coachella Valley can comfortably welcome the tens of thousands who travel here for events such as Modernism Week, the BNP Paribas Open tennis tournament, the Coachella and Stagecoach music festivals, and other major events.

Farm restaurant.

“It’s all about balance,” says Davis Meyer, Vice President of Government & Industry Relations for Visit Greater Palm Springs. “When you look at our region overall, the Coachella Valley has strived to achieve that balance — listening to residents, creating ordinances that allow for short-term rentals, while also requiring permits and putting rules into place.”

Education also plays a vital role in finding that balance within communities. Visit Greater Palm Springs partners with Rent Responsibly, an education and community-building platform, to offer short-term rental operators training and resources — including a communication template to help them engage with guests — to professionalize and elevate the standard of vacation rental operations.

Short-term rentals are an important factor in the region’s economic growth, fueling small businesses such as restaurants and retail establishments and helping to fund community services. With ongoing education for hosts, well-crafted city ordinances, consistent enforcement, and a focus on the needs of residents, short-term rentals will continue to positively impact the local quality of life.

For more information, visit OneCV.org.