The Ebb and Flow of Short-Term Rentals: Joshua Tree’s Lasting Transformation

High Desert Dreams: A Glimpse into the Joshua Tree Short-Term Rental Boom

Imagine rolling into Joshua Tree on a dusty afternoon—there’s a special energy here where desert earth meets the sky’s wide stretch. The rush of travelers seeking refuge from city noise carved out new opportunities, but these changes have woven themselves deep into the fabric of this once-sleepy community. For people who manage or own short-term rentals, especially in places with a strong sense of local character like Denver or the Colorado Foothills, the lessons and aftershocks from Joshua Tree feel close to home, too.

The Rise: Desert Havens and Pandemic Escapes

When the COVID-19 pandemic upended daily life, many city dwellers began chasing dreams of open spaces and isolation. Some debated the idea, but folks like Emmanuel Ruggiero put it in motion. Instead of speculative talk, he bought land in Joshua Tree and set out to build an Airbnb-focused retreat—a modern hideaway with high ceilings, a swim spa, and even a backyard golf course. The motivation? Catching the massive wave of travelers eager to escape city stress and virus worry.

That investment looked golden—at least for a while. After a couple of years hosting guests and juggling remote property stress, Ruggiero started feeling the strain. Now, he’s looking to offload the property at a sizeable loss compared to what it was worth at the peak. “If I’d put everything into the stock market, I’d probably have more to show right now,” he admitted.

Market Winds Begin to Shift

What happened to all that high demand? It’s not just Ruggiero seeing the cool-down. Throughout the Joshua Tree area, there’s been a decrease in active short-term rental listings—a first since the pandemic drove numbers sky-high. According to AirDNA, listings dropped from 3,606 at this time last year to 3,449 in 2025. Instead of quick profits and easy bookings, many owners are now considering long-term renters or even taking losses if they decide to sell.

The consensus among real estate professionals and property managers is clear: the market got overheated, many underestimated costs and hassle, and some are now looking for safer ground. Add in fewer tourists and the chill of economic uncertainty, and even seasoned investors are reevaluating their plans.

How the Rental Craze Changed the Community

Local residents have seen the landscape around them transform. Gina Grandi, who has lived in the area for decades, watched old, unremarkable buildings shift into high-priced homes as real estate values soared. Social media played a part. Joshua Tree became an Instagram darling—and the urge to own a piece of that image was irresistible for many buyers.

Grandi herself listed a property on Airbnb as early as 2017, but the hidden costs soon became reality—new HVAC, rewiring, ballooning maintenance and cleaning bills. Even with the tourist dollars, she couldn’t cover the mortgage. Eventually, she shifted to a traditional long-term tenant.

For well-funded investors with prior experience in bigger markets like Los Angeles, the story was different. They capitalized on their scale, snapped up available homes, and converted modest ranches into plush getaways stacked with custom amenities—from pools and fire pits to private “lazy rivers.” The contrast in the neighborhood was stark: classic desert homes now stood next to modern, black-painted megamansions, all vying for attention. “It was like a theme park out here,” Grandi remarked. “Cowboy pools, hammocks, outdoor fire pits…the works.”

But the impact stretched beyond facelifts. Neighbors who knew each other for decades found their streets transformed by weekend visitors, loud parties, and investors eager to turn every house into a rental. Some long-term renters were evicted, while other landlords raised rents thanks to shrinking local supply. “During COVID, it really got wild,” said investor and property manager Patryk Swietek, who helps run a podcast about Airbnb strategies and co-owns a major management company in the area.

Why Investors Rushed In, and What They’re Doing Now

Travelers flocked to Joshua Tree craving space and privacy. Even homes in typical suburban neighborhoods—places that didn’t quite match the romantic desert image—filled up fast. The result? A cascade of investment dollars poured in, snapping up lower-priced properties and seeking a quick flip to rental use.

Sometimes, though, reality checked those dreams. Los Angeles resident Gita Vasseghi wanted to buy in Joshua Tree at the market’s height, but prices there were spiraling $100,000 to $200,000 above ask. She settled for a home nearby, battled through a costly renovation setback, and by the time she listed her property, the market had pivoted. More people were called back to offices, travel routines broadened again, and suddenly, the “Airbnb millionaire” story wasn’t panning out. Vasseghi summed it up: “You live and you learn.” She’s now looking to attract a long-term tenant instead of chasing short-term returns.

Swietek noticed first-hand that rental demand slipped fastest for homes on small lots without standout outdoor perks. His own journey includes a rental decked out with pink walls and a disco ball—a memorable experience for sure, but occupancy lagged behind. He’s now talking with a prospective long-term tenant to stabilize income.

Luxury vs. Economy: Where the Market Stands Now

Despite headlines about a struggling market, there’s nuance. High-end and luxury short-term rentals have actually done well. According to AirDNA, although area-wide occupancy rates dropped from 71% in 2020 to about 52% last year, high-end homes fared far better. Meanwhile, the average daily rate on rentals has reached record highs in 2025. The dip has mostly hit mid-tier and budget properties. Swietek believes the homes never really meant for short-term rental are drifting back to the regular housing market—though probably not at the bargain prices locals remember.

Will More Long-Term Rentals Boost Local Housing?

Some experts caution against blaming short-term rentals alone for housing affordability woes. Kevin Klowden from the Milken Institute points to research showing that short-term rentals make up a sliver of the housing market, and most are pricey enough to stay out of reach for typical local families. He insists the core problem is a long-standing lack of new housing overall.

“It’s not short-term rentals causing the shortage—it’s years of underinvestment in all kinds of homes.”

Still, more rentals returning to the general market could help—if, and only if, demand continues to cool and owners get realistic about pricing. But as Bob Armstrong, a seasoned Yucca Valley broker, observes, that’s far from automatic. Prices haven’t really fallen much since 2021. Many sellers would rather let properties linger on the market than accept a loss, even as inventory has jumped dramatically—from under 200 listings in 2021 to over 700 in late 2025. That’s a firm shift toward a buyer’s market, but sellers are slow to adjust.

Financial Lessons and the New Norm

With so many homes sitting unsold, more owners are switching gears and looking for reliable long-term tenants, even if monthly rent doesn’t entirely cover the mortgage. “It’s a tough pill to swallow,” said real estate broker Mandilyn McGowen, “but it’s better than footing the entire mortgage out of pocket.” There’s a general sense that rents have leveled off a bit, but few expect prices to roll back to their pre-pandemic levels.

Stories like Myriah Westmoreland’s put a real face to the changes. Once able to rent a one-bedroom in Yucca Valley for $750, she now sees the same apartment marketed at $1,350. Priced out, she has opted for life in a converted bus, traveling between towns. Westmoreland remembers when the desert’s star-studded night sky sparkled overhead—now it’s often washed out by growth and development’s glare. “I cry at night sometimes,” she said quietly, remembering the stark beauty lost to the new normal.

What Joshua Tree Teaches Us About Short-Term Rental Markets

For property owners and managers in places like Denver or the Colorado Foothills, these sweeping changes in Joshua Tree are both a cautionary tale and a source of practical insight. The market can get hot—sometimes uncomfortably so—but community, transparency, and smart long-term thinking matter more than trying to catch every trend. The homes best suited for vacationers may survive the market’s ups and downs, but high hopes, flashy amenities, or deep pockets don’t guarantee endless returns. As the dust settles over Joshua Tree, one point stays clear: real estate moves in cycles, but communities live with the ripples long after.