One of the consequences of the 2008 financial crisis was a rise in the number of renters in the Coachella Valley. So much for the ownership society.
The number of long term rentals increased 36% from 2009 – 2015 (California increased 25%).
The share of single family homes rentals went from 16.7% in 2009 to 21.5% in 2015.
From 2009 – 2015, a rental came on the market for every newly built home.
But not all communities in the desert are the same. Palm Springs and Indian Wells saw a decrease in the number of SFR rentals. Other communities fared far worse.
Increase in number of SFR rentals:
Rancho Mirage: 227%
Desert Hot Springs: 50.3%
Cathedral City: 43.2%
La Quinta: 22.9%
Palm Desert: 19.8%
Even with all this inventory, rents continue to increase 5-7% per year.
What this will mean for these communities remains to be seen, but generally, people see homeownership as a positive because owners are more invested in the area and will likely better maintain their properities and be more engaged in the community. Many have long justified by the mortgage interest deduction for these reasons.