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aging population

Changing Demographics in the Palm Desert Real Estate Market: A Strategic Perspective

The Palm Desert real estate market is a dynamic landscape influenced by various factors, including shifting demographics. As the population evolves, so do the demands and preferences of homebuyers and investors. In this article, we explore the impact of changing demographics on the Palm Desert housing market and provide insights for real estate professionals and potential buyers. 1. The Current State of the Palm Desert Housing Market. a. Price Trends: In December 2023, Palm Desert home prices experienced a 5.2% decline compared to the previous year, with a median price of $550,000. Despite this decrease, the market remains active, with 85 homes sold during that month. Understanding these price fluctuations is crucial for both buyers and sellers. b. Days on the Market: On average, homes in Palm Desert sell after 48 days, slightly longer than the previous year’s average of 47 days. This indicates a balanced market where buyers have time to explore their options. c. Migration Trends: Inbound Migration: Approximately 20% of Palm Desert homebuyers considered moving out of the area, while 80% preferred to stay within the metropolitan region. Some out-of-state buyers, particularly from San Francisco, expressed interest in relocating to Palm Desert. Outbound Migration: Residents leaving Palm Desert primarily moved to San Diego, Las Vegas, and Bakersfield. 2. The Impact of Changing Demographics. a. Aging Population: The aging population in Palm Desert plays a significant role in shaping the real estate market. As retirees seek warmer climates and a relaxed lifestyle, demand for retirement communities and age-friendly amenities increases. Real estate professionals should consider properties that cater to this demographic, such as single-story homes, accessible features, and proximity to healthcare facilities. b. Airbnb and Short-Term Rentals: The rise of short-term rentals, including platforms like Airbnb, has impacted the market. While these rentals offer income opportunities for property owners, they also affect housing availability and neighborhood dynamics. Investors should be aware of local regulations and market trends related to short-term rentals . 3. Strategies for Real Estate Professionals. a. Targeted Marketing: Understanding the changing demographics allows real estate agents to tailor their marketing efforts. Highlight features that resonate with specific groups, such as retirees, families, or young professionals. Emphasize proximity to golf courses, cultural attractions, and outdoor activities to attract the right buyers. b. Community Insights: Stay informed about community developments, infrastructure projects, and lifestyle amenities. Buyers often seek neighborhoods with parks, shopping centers, and recreational facilities. Being knowledgeable about these aspects enhances your ability to guide clients effectively. c. Collaborate with Local Experts: Partner with local experts, including mortgage brokers, appraisers, and relocation specialists. Their insights into changing demographics and market trends can provide valuable guidance to clients. Networking within the community fosters trust and credibility. In Conclusion, As the Palm Desert real estate market continues to evolve, real estate professionals must adapt to changing demographics. By staying informed, targeting marketing efforts, and collaborating with experts, they can navigate the shifting landscape successfully. Whether you’re a buyer, seller, or investor, understanding these dynamics will empower you to make informed decisions in this vibrant desert oasis.

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Impact of Aging Population on the Real Estate Market in Palm Desert

The aging population is a significant demographic trend that has far-reaching implications for various sectors, including real estate. In this article, we delve into the impact of an aging population on the Palm Desert real estate market. As the number of seniors grows, how does it affect housing supply, demand, and property values? Let’s explore. The Silver Tsunami: A Demographic Shift:   As of 2018, 52 million people in the United States were aged 65 and older. By 2034, this population is expected to, for the first time in American history, outnumber the 18-and-under population. This rising number of seniors will have a major impact on the real estate market. Supply and Demand Dynamics. 1. Housing Supply from Aging Homeowners: A significant portion of existing homes for sale over the next decade will come from the aging and mortality of baby boomer homeowners. However, research indicates that this influx of homes is unlikely to disrupt the housing market significantly. The Mortgage Bankers Association’s (MBA) Research Institute for Housing America (RIHA) found that sustained demand from population growth and younger generation households will keep home price reduction and excess housing supply at a minimum. Even as baby boomers are expected to provide 4.4 million homes annually in the coming years, the impact on home prices is projected to be minimal . 2. No Measurable Decline in Home Prices: According to the MBA RIHA report, aging and mortality are gradual and predictable. Based on changing demographics and population growth, there is enough homebuyer demand to meet most of the existing inventory that will come onto the market from older homeowners. The study suggests that housing supply from baby boomers will lead to an excess of around a quarter-million units annually through 2032, with most of the adjustment to the excess inventory coming from a reduction in housing starts and completions. The rental market will also play a role in absorbing some of the supply. Opportunities for Investors: While the impact of aging on the real estate market is not insignificant, it will unfold over several decades. Savvy investors can take advantage of this demographic shift by considering the following: Senior Living Communities: As the aging population seeks housing options tailored to their needs, investing in senior living communities can be lucrative. Assisted living facilities, retirement communities, and age-restricted housing developments are areas to explore. Adaptation and Renovation: Older homeowners may choose to downsize or modify their homes to accommodate changing health needs. Investors can tap into this demand by offering renovation services or purchasing properties for adaptive reuse. Multigenerational Housing: With more seniors living longer, multigenerational housing arrangements are on the rise. Investors can explore opportunities to create housing solutions that cater to extended families. Conclusion The impact of an aging population on the Palm Desert real estate market is multifaceted. While supply dynamics will shift gradually, investors who understand the changing landscape can position themselves strategically. As the silver wave continues, the real estate industry must adapt to meet the evolving needs of seniors while maintaining a balanced market for all generations.

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