No. Palm Desert is a genuinely good city to own in; the homework is the rental rules and knowing your renter. The Coachella Valley is really a string of distinct communities: Palm Springs, Palm Desert, Indian Wells, Cathedral City, Rancho Mirage, Coachella, Indio, and more. Each has its own feel and demographic. Palm Springs skews younger with more nightlife; Rancho Mirage and Palm Desert run older and more upscale. Who your renter is changes block to block, so know exactly which pocket you're buying into. One of us lives directly across from Palm Desert in Rancho Mirage and would happily own in Palm Desert, Indian Wells, or Rancho Mirage. The honest cautions apply to the desert broadly: there tends to be a lot of inventory out there, and if a wave of vacation-rental owners decides to sell around the same time, values and rents in specific pockets can come under pressure. If you're eyeing a short-term rental, research that specific city's rental restrictions before you buy. Regulations vary significantly even within the valley, and a rule that ends nightly rentals in one city may not apply ten minutes away. Confirm the current ordinance, and make sure the property still works as a long-term rental in case short-term rules tighten. Do that homework and Palm Desert can be a perfectly reasonable place to own.