By now, if you haven’t been to the Coachella Music and Arts Festival (going on this weekend and next), you’ve at least heard of it. I’ll start out by saying that the only thing more difficult than not being at the festival, is writing about it at the exact same time it’s going on. That being said, the impact this festival has on the local economy and community is colossal, so the pain I endured in the making of this article is justified!
Let’s lay some groundwork – this festival is one of the highest grossing festivals in the world. In 2013, the festival hosted nearly 300,000 attendees – more than ten times the total attendance at the very first festival in 1999! Each weekend (the festival runs back-to-back weekends), 80,000 music and arts fans crowd the grounds making the festival more populous then the city of Indio itself. Every year the festival has a $250 Million local and $500 Million global economic impact. More than 3,000 temporary jobs are created, and $20 Million in taxable sales is accumulated over a nine day period!
Now that you have a good idea of how big this carnival is, let’s talk real estate.
During these two crazy weekends, vacation properties in the area rent for an average of $650 per night – 260% more than the average annual rate in the area (according to data from Homeaway.com). The demand for vacation rentals has increased 12% from last year. Demand is especially high in Palm Springs (up 27%), Rancho Mirage (up 28%), Cathedral City (up16%), and La Quinta (up 13%). According to a study by TXP Inc, a consulting firm based in Austin, TX, short term rentals generated $272 Mil of economic output in the Coachella Valley in 2013. The festival alone is enough to blow your mind, but the economic effect it has on this isolated desert region is just as impressive.
Boasting natural beauty, stylish boutiques, elegant spas, and epic music festivals – tourism is a pivotal part of the Coachella Valley economy. Visitor spending is crucial in increasing local employment, as well as state and local tax revenue. As you would guess, not everyone is happy about the attention the festival brings. In three weekends, a total of 675,000 jam the roads, pack into restaurants, and overwhelm stores. In the past, concert goers have hopped fences, used neighbors’ swimming pools, and slept in their backyards, said La Quinta Mayor Don Adolph. “We’ve battled this situation for years”.
– If you own rental property near the festival require a massive security deposit and have an ironclad rental agreement!
– If you are looking to rent out there, book your house now for next year – because these places are booked months in advance!