Gold Rush for California Desert Cities as Wealthy Residents Move In

California desert communities are no longer just seasonal escapes—they’re fueling a gold rush as full-time luxury destinations.

Incomes have surged in Thousand Palms, Indian Wells, and Del Mar, reshaping housing demand across the state's desert and coastal enclaves.

Buyers from Los Angeles, Santa Barbara, and Northern California are snapping up properties that offer not just homes, but a lifestyle: gated communities, wellness amenities, golf, tennis, and even smart home technology.

JoAnna Pallante, a Los Angeles–based real estate agent, tells Realtor.com® that demand is skyrocketing for homes that combine resort-style living with modern convenience.

“Homes with golf, tennis, and pickleball facilities remain in high demand, but today’s luxury buyer is equally focused on wellness-forward amenities such as saunas, cold plunges, and advanced smart home technology,” says Pallante. “Buyers are gravitating toward gated communities that offer not just privacy, but also a lifestyle."

Lifestyle and location are driving demand

Part of the appeal lies in the communities themselves. Indian Wells and Del Mar offer established luxury markets with resort-style amenities, while Thousand Palms provides a more affordable option for buyers seeking proximity to Palm Desert and fewer development restrictions. For Indian Wells and Thousand Palms, these factors make the Coachella Valley cities a magnet for buyers looking for both lifestyle and investment opportunities.

Hannah Jones, senior economic research analyst at Realtor.com, highlights recent price trends in the region. Riverside County’s median home price climbed 45.6% from $442,900 in August 2019 to $645,000 in August 2025. In Indian Wells, the median jumped 54.7% to $1.3 million, while Thousand Palms saw a nearly 20% increase to $415,000.

“These areas may be attracting high-income buyers from more expensive coastal metros. These buyers bring high purchasing power, which boosts local housing demand and pushes prices higher,” says Jones.

Jones explains that the influx of wealthy buyers can create challenges. She also notes that industries serving high-earning customers—luxury retail, dining, and hospitality—could benefit, while local businesses serving middle- or low-earning clientele could struggle.

While existing homeowners may see climbing equity, it can be harder for first-time or move-up buyers to afford a home, says Jones.

"These markets are well-developed, so do not follow the typical definition of an 'emerging market,'" she adds. "However, these could be considered emerging luxury markets."

Income and market trends

The influx of wealth is also reflected in local incomes. According to a Los Angeles Times analysis of California Franchise Tax Board data, average incomes in Thousand Palms more than tripled from 2017 to 2022, while Indian Wells nearly doubled.

Kyle Garman, a Keller Williams agent who has worked in the Coachella Valley for eight years, attributed the growth to a mix of remote work and the valley’s evolution from a tourist destination to a full-time residential hub.

“It’s not just Palm Springs, it’s not just people coming for the festivals, it’s the whole valley,” he told the Times.

Pallante further explains why these communities are appealing places to live or invest in.

“Thousand Palms originally saw an influx of Los Angeles residents seeking refuge during the wildfires, and many chose to make their stays permanent. Indian Wells, meanwhile, continues to evolve as a lifestyle hub," says Pallante.

"The arrival of marquee names like Nobu has elevated the dining scene, while the annual BNP Paribas Open [professional tennis] remains one of the desert’s crown jewels, attracting global attention and driving consistent interest in real estate."

As affluent buyers continue moving into communities like Indian Wells, Del Mar, and Thousand Palms, it puts them on the map, emerging as a high-end residential hub. Balancing growth, lifestyle amenities, and affordability will define the future of these desert towns as they transition from seasonal getaways to year-round luxury destinations.