Realtor.com shares, "the country's biggest festivals have had a dramatic—and very positive—impact on the housing markets in towns and cities that host America's most popular events, from Coachella to Lollapalooza, new Realtor.com® data has revealed.
Every year, hundreds of thousands of visitors converge on places like Austin, TX; Indio, CA; and Park City, UT, with many opting to take advantage of short-term rentals (STR) for the duration of their stay, rather than hotels, which often have higher prices and fewer home comforts.
The influx of festivalgoers provides local homeowners with a lucrative opportunity to earn extra income by leasing their homes as STRs—a trend that has seen local house prices in many festival hot spots nearly double in the past decade alone.
According to Realtor.com senior economist Joel Berner, it is Indio, which hosts many of the Coachella visitors, and Park City, where the Sundance Film Festival is held, that have seen the biggest home price increases of all the festival hot spots. For example, Indio's median list price shot up from $333,666 in 2016 to $608,900 in 2025.
"The most notable cities on the list in terms of price growth are the smallest ones, Indio and Park City," Berner says. "Both have seen more price growth in recent years than the big cities [Chicago, Austin, Salt Lake City] and the U.S. as a whole."
Still, all of the major festival sites in the U.S. have experienced positive home price increases—as local homeowners seize the opportunity to earn extra income through short-term rentals around the events.
Coachella: Indio, CA
Homeowners in Indio, CA, and surrounding cities where the Coachella music festival is being held, are watching their property values rise as tens of thousands flock to the site.
The Coachella Valley Music and Arts Festival, simply known as Coachella, debuted in the desert in October 1999. It grew from a two-day event featuring alternative and indie rock artists to a two-weekend party where artists from all genres—pop to hip-hop to dance—converge. Rock reunions are had, and big name headliners are a draw.
The popularity of the festival, followed by the Stagecoach Festival in late April, has been a boon for the local economy. Many homes are being used as short-term rentals to accommodate fans looking to hunker down for the weekend or even the two-week duration.
Home prices in Indio have almost doubled in a nearly 10 year span.
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2025 median list price (March): $608,900
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2020 median list price (March): $367,000
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2016 median list price (June): $333,666
"The demand for properties has steadily increased as more people wish to invest and live near the festival site," Cathy Muldoon, real estate agent and founder of Muldoon Luxury Group, tells Realtor.com. "Residents and investors understand that if they want to lease their property over the festival period, being in close proximity is highly desirable."
Residents in Indio who want to use their property as an STR are required to get a permit and register for the purposes of collecting transient occupancy tax. The permit fee and to renew it annually is $1,633—that's in addition to a business license fee and tax.
"These STRs typically command significantly higher rates than the average daily or weekly rental rate due to the high demand," explains Muldoon. "Homeowners see this as a lucrative opportunity to maximize their rental income, with rates often tripling compared to the offseason."
Stephen Burchard, real estate agent and owner of Stephen Burchard Real Estate, notes that if "a homeowner is able to rent out a home due to loose city ordinance restrictions, then some are taking advantage of it. However, if they live here full time, then they need to find housing and that can be a challenge. The Valley sells out for Coachella, STRs, and hotels. It is common with big events in the desert to see this happen."
Lollapalooza: Chicago, IL
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2025 median list price (March): $354,900
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2020 median list price (March): $349,000
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2016 median list price (June): $279,000
Lollapalooza started in 1991 as a farewell tour for Jane's Addiction, but it's become a showcase with an eclectic lineup ranging from punk to hip-hop to heavy metal.
The three-day festival all takes place in downtown Chicago's Grant Park. The Windy City has no shortage of hotels for visitors to book, but for groups looking to gather in one place, short-term rentals are also available.
The STR license fee starts at $250, plus a $60 per unit. The amount goes up if someone owns more than one rental.
SXSW: Austin, TX
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2025 median list price (March): $625,000
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2020 median list price (March): $525,000
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2016 median list price (June): $489,000
SXSW, short for South by Southwest, started in 1987 and brings thousands of visitors to Austin every March. It showcases music, film, and media. At its inaugural conference, it had 15 panels, 177 artists, and 15 stages. Organizers only expected the 150 people who registered, but over 700 showed up on the first day. Now, more than 300,000 people attend every spring.
Homeowners looking to use their homes as STRs need to apply with the city for a license. A nonrefundable fee of $779.14 is due with the application.
Sundance Film Festival: Park City, UT
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2025 median list price (March): $2,500,000
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2020 median list price (March): $1,637,500
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2016 median list price (June): $ 1,320,757
The history behind the Sundance Film Festival has evolved, not only in size but location. It kicked off in Salt Lake City back in 1979 as an event to attract more filmmakers to the state of Utah but eventually moved locations to Park City.
The move highlighted Park City as the "it" destination, not only for the festival and the celebrities it draws but as a top-notch ski resort. In less than 10 years, the median list price grew by nearly 50%, according to Realtor.com data. Visitors will find a vast selection of homes offered as short-term rentals, but that's been a point of contention.
Over 60% of STR listings are concentrated in three counties: Summit (Park City), Salt Lake, and Washington, according to a study from the University of Utah's Kem C. Gardner Policy Institute. Full-time residents unhappy with STRs cite an increase in traffic and noise.
Meanwhile, any suggestion of STR restrictions have come under scrutiny from real estate agents who claim stricter laws would hurt property values. As it stands, homeowners are required to pay a nightly rental license fee of $350 annually.
All the back-and-forth will soon be for naught, as the Sundance Film Festival will be moving to Boulder, CO in 2027."
Source: Realtor.com
Written by: Joy Dumandan
Published: April 15, 2025
Posted by Grossman & Jones Group on
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