The first concern that comes to mind is whether it's a good idea to consider Palm Springs as a second home after retirement. Looking at the price trends in this desert resort city over the past five years, there are several clues that may help answer that question. Known for its mid-century modern architecture, this city has entered a completely new phase since the pandemic. While it used to primarily attract retirees and winter vacationers, it has recently seen an influx of remote workers and younger generations, significantly diversifying its demand base.

At the beginning of 2021, the median home price in Palm Springs was around $530,000. As of 2026, it is estimated to be around $760,000, indicating a cumulative increase of approximately 43%. Considering that the national average increase during the same period was around 35-40%, Palm Springs is evaluated as a region that has shown a strong upward trend above the national average. Areas closer to downtown have seen even more pronounced increases.

From 2021 to 2022, the spread of remote work led to a significant increase in demand from LA and Orange County for second homes or even relocation. After the second half of 2022, transactions slowed somewhat due to rising interest rates, but structural demand from tourism and retirement migration seems to have kept the adjustments less severe compared to other inland areas. Between 2024 and 2025, a gradual upward trend has reestablished itself. There is still a seasonal flow of short-term rental demand around the Coachella Valley Music Festival season.

The factors pushing up prices in this area appear to include a steady influx of retirees, demand for tourism and short-term rentals, and the limited new development due to the desert terrain. In particular, areas near golf communities and hot spring resorts tend to show relatively steeper increases. Recently, some local governments have tightened regulations on short-term rentals, which may have somewhat affected the investment buying sentiment.

However, it is necessary to be cautious when forecasting future trends. Given that this market experiences significant fluctuations in transaction activity due to extreme summer heat, it seems advisable to approach it from a long-term perspective rather than reacting to short-term price changes.

Among Korean households, many considering a second home as they approach retirement often show interest in this area. If you are considering a purchase, it is recommended to carefully calculate the actual holding costs, including management fees and HOA costs, and if you are thinking about selling, timing it with the tourist peak season could be a strategy. It would also be wise to check for any changes in short-term rental regulations in advance.

Compared to other regions in the country, some cities in Arizona and Florida that overlap with retirement migration and tourism demand have also shown strong increases of around 40% over the past five years, similar to Palm Springs. These areas generally share the characteristic of limited new supply while experiencing steady population inflow.

It would also be beneficial to keep an eye on mortgage rate trends. Purchases for second homes or investment purposes often have less favorable rate conditions compared to primary residence loans, so preparing a substantial equity portion may help reduce interest burdens. Although there are signs of recent gradual easing in rates, it is advisable to monitor the situation carefully.

Ultimately, it seems best to approach Palm Springs with the understanding that it is a market intertwined with lifestyle and investment purposes rather than just primary residence. Considering retirement timing and children's independence together, it is recommended to watch the market with patience.