The Coachella Valley Real Estate Boom
The Coachella Valley and Joshua Tree real estate market is trending upwards. With so many people working from home, the desert real estate market is looking more attractive than ever. Low interest rates and inventory, as well as high demand, have sparked many new housing developments in the Coachella Valley.
Let’s look at key real estate trends that are affecting home buyers in the desert and how these trends are driving the development of new communities.
Historically Low Housing Inventory in the Coachella Valley
COVID stay-at-home restrictions and the desire to move to less congested areas led to an unexpected buying spree in the Coachella Valley. Another consequence of the pandemic was the historically low pace of housing construction, resulting in the explosive rise in median home prices in the desert.
As we move out of the pandemic, new housing developments are on the rise. Many of these developments are geared towards making housing more affordable and accessible for residents in the Coachella valley.
New Developments in the Coachella Valley Gaining Steam
The growing demand for homes in the valley has led to new construction of both homes and condos. As a result, this has led to more jobs opening up and more home buyers moving to the desert.
Residential Development in Desert Hot Springs
Developer Skyborne Ventures purchased land in Desert Hot Springs, California. The rising demand to live in the desert inspired the project, especially as residents grew tired of being locked down in apartment complexes.
However, development came to a stop. Since then, Lennar, a well-known national home builder, recently finalized a deal with Skyborne Ventures to kickstart the long-dormant residential development. Lennar will start building and selling 79 homes. From there, the company will build out the rest of the lots at a later phase.
These homes will be for working-class families, giving them the ability to comfortably afford a home of their own. Lennar aims to make this possible by limiting custom building options, which will provide fewer choices for furnishings and materials. As a result, the company can buy in bulk. This, in turn, lowers Lennar’s price and keeps the cost down for the buyer.
Veterans Village of Cathedral City
Cathedral City is also gaining steam when it comes to new housing developments. A new housing development will bring 48 one-bedroom units and 12 two-bedroom units for veterans in Cathedral City.
The project developers, Ikaika Ohana (Urban Housing Communities), of Veteran’s Village received a $5.5 million Veterans Housing and Homelessness Prevention Program (VHHP) award through the California Department of Housing and Community Development.
Cathedral City has contributed around $2.1 million to the project. The housing development has also received funds from other sources including Citibank, RBC, Veterans Housing and Homeless Prevention funds, and more.
Veterans Village will provide veterans with the supportive services they need to live full and healthy lives. On land that has spectacular mountain views, the building will offer many amenities, including:
- 3,000 square foot community center
- Outdoor seating
- Volleyball court
- Community garden
- Bocce ball courts
- BBQ area
- Swimming pool
America’s First 3D Printed Neighborhood
Southern California developers claim a new housing development will result in the first 3D-printed zero net energy neighborhood in the United States.
Palari Group—a company that develops sustainable communities and custom modular homes—plans to build 15 eco-friendly 3D-printed homes in Rancho Mirage. The single-story homes will be 1,450 square feet and feature stone composite material, a durable material that’s resistant to weather, fire, and termites.
Mighty Buildings, partners of Palari Group, will print out the modular panels that will make up the homes’ construction, in which builders will assemble at the building site. Palari Group prefers to build with 3D-printed materials because it reduces the significant waste associated with traditional building practices. For elements of the homes the company can’t 3D print, Palari Group will sustainably source materials
Furthermore, solar power will supply all energy needs. Also, owners will be able to install other options like the Tesla Powerwall, outdoor showers, cabanas, and fire pits.
Community Housing Opportunities Corporation (CHOC) Affordable Housing
In over 12 years, Monarch Apartment Homes will be the first multifamily affordable housing community in Palm Springs. Coming in one-, two- and three-bedroom units, this project will bring housing to working families in the Coachella Valley. The hope is to act as a catalyst to inspire other coalitions to pioneer more affordable housing developments in the city and overall Coachella Valley region.
The development of Monarch Apartment homes will bring many benefits to the community. For example, residents will have a shorter commute to their workplace. However, they’ll also be able to support local businesses close to home as well.
The $31 million housing development will feature a contemporary Mid-Century Modern architectural style, sustainable building materials, and natural desert plants that blend in with the surrounding communities.
This project wouldn’t be possible without the partnership between the Community Housing Opportunities Coalition (CHOC) and the Disposition Development Agreement (DDA). The upcoming housing complex will serve as an excellent example of how this type of project can solve the affordable housing challenge throughout the state of California.
Affordable housing in the Monarch Apartment Homes community will give residents the chance to live in cities they wouldn’t otherwise have been able to afford. This opportunity gives them access to better school choices.
Beyond providing residents with affordable housing, better access to schools, and a shorter commute to work, the complex also has many amenities. It will feature a dog park and a Monarch splash pad, which is a water feature with a deck area. The splash pad will be integrated into the main open space adjacent to a children’s play area as well as two BBQ areas.
Developers estimate the apartment community will be ready for occupancy in January 2023.
Coachella Valley Housing Coalition (CVHC)
The Coachella Valley Housing Coalition (CVHC) is partnering with DAP Health—an advocacy-based health center in Palm Springs, CA–for special needs housing development.
The organizations received a total of $18,916,413 in state and federal tax credits from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee. The CVHC will use this financing to begin building an affordable housing development known as Vista Sunrise II. This development will exist on the DAP Health campus at Sunrise and Vista Chino in Palm Springs.
Construction will consist of studios and one-bedroom units. These homes will be specifically for individuals and families with chronic illnesses and/or physical or mental disabilities. Vista Sunrise II will also be open to the homeless.
The Vista Sunrise II housing development aims to address the housing crisis and provide individuals with mental and physical disabilities with fair housing opportunities. Furthermore, residents of Vista Sunrise II will be in close proximity to many of the critical services they need on the DAP Health campus.
Beyond providing affordable housing, the Vista Sunrise II housing development will also:
- Bring jobs to the community: The project will bring wage construction jobs to locals.
- Meet energy standards: The project will involve green building practices as well as appliances that meet energy-efficient standards.
- Offer outdoor recreation: Vista Sunrise II residents will have easy access to a dog park and green space, offering seating and recreation.
- Include a computer center: The community room will house a computer center, giving residents access to resources they otherwise wouldn’t be able to access.
- Offer a demonstration kitchen: The community room will also include a demonstration kitchen where residents can learn how to prepare healthy meals with free classes and workshops.
Coral Mountain Resort in La Quinta
An 86-acre development in La Quinta will be a neighborhood that serves as a retreat for residents and visitors The project promises residents will be able to enjoy luxury homes and built-in recreational opportunities, surrounded by a surfable wave basin.
Titled Coral Mountain Resort, the development will feature a range of recreational activities, including:
- A 150-room hotel
- Spea and wellness facilities
- Hiking and biking trails
- Adventure-sports facilities
- Restaurant and market
New Disney Living Community
New “Storyliving” by Disney neighborhoods aims to bring the Disney lifestyle to residents of Coachella Valley year-round. Disney recently announced a slate of new master-planned communities. Dubbed Cotino, the first Storyliving by Disney village will be in the Rancho Mirage development, which will feature a mix of single-family homes, condos, and estates. Residents will have access to a Disney-staffed clubhouse complex. Castmembers will work amongst residents, offering a range of guest services, which will make residents feel like they’re staying overnight at one of the theme parks forever.
Cotino Storyliving will also be a club membership program that offers residents “curated experiences”, which will include wellness programs and cooking demonstrations. Disney Cotino will welcome homeowners of all ages and include a designated place for seniors aged 55 and over.
Other features of the community will include:
- Two luxury hotels
- 24-acre lagoon
- Town center for shopping
- Clubhouse that acts as an art gallery space
To bring the project to fruition, Disney is working with real estate developers and home builders at each site. The entertainment and theme park company is also enlisting the help of Arizona-based DMB Development, which specializes in town planning, to turn the dream into a reality.
The Disney team decided to build Disney Storyliving in Rancho Mirage because of its prime location, featuring breathtaking mountain views. Also, the late Walt Disney once owned a family retreat in Rancho Mariage. The new 1,900-house Storyliving development will be the first instance of Disney-branded homeownership that isn’t part of its theme park properties.
Gallery at Miralon in Palm Springs
Gallery at Miralon by Gallery Homes will include 50 desert homes situated on large lots with incredible mountain views and various amenities. Buyers will get to choose from four unique floor plans. Each Miralon home will also include a private courtyard entry with a private pool.
Furthermore, residents will get to enjoy a clubhouse that will feature pools, a full-service bar, demonstration kitchen, yoga and fitness studio, and Wi-Fi café.
Aspire by Brenson Homes
Home building company Brenson Homes will offer modern styled attached homes inside the gates of Indian Palms Country Club in Indio, California. Featuring three single-story open floorplans, Aspire homes will have courtyards, covered patios, and backyards with direct access to pool and spa amenities. The homes will also have energy-efficient features, including:
- LED lighting
- Solar panels
- Tankless water heaters
- Vinyl windows with paned glass
New Hotel Complex in Development for Indian Wells
Developers announced a proposal to bring together homes, condos, and conventional hotel rooms in one development project in Indian Wells.
The project aims to attract multi-generational travelers who are looking for a short-term rental that offers space and privacy that’s reminiscent of a hotel. Scheduled to open in 2022, Delano & Hotel Residences will include 154 hotel rooms and 59 condos. The project will be located near Indian Wells Tennis Garden.
Affordable Housing Project in Palm Springs
Developer West Hollywood Community Housing Corporation (WHCHC) received $6.4 million from the NPLH to fund an affordable housing project in Palm Springs.
Aloe Palm Canyon will be a two-story, 71-unit affordable housing project for seniors. The properties will feature lush, desert-friendly landscaping and many amenities, such as a computer room, fitness room, laundry room, demonstration kitchen, and central outdoor open space.
Residents of Aloe Palm Canyon will also have access to medical care, mental health services, and multiple support programs. These services aim to provide elderly residents with a higher quality of life.
How New Developments Are Raising Real Estate Values in the Desert
Generally, new development increases home value in the long run. This is because new development tends to provide more opportunities to enrich the community. Plus, as city buyers flock to the desert, the demand for homes rises.
This has led to developers proposing plans to start new housing developments to build more homes in the desert. The number of new projects will only rise as new home buyers move to the Coachella Valley.
Looking to purchase in the Coachella Valley? Our agents at OpenAiRE can help.