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oachella Valley real estate agent Valery Neuman has been flooded with calls, reminiscent of the COVID-19 pandemic. However, this time around, she attributes the increased demand to people seeking refuge from the Los Angeles-area fires rather than a deadly pandemic. Neuman has already sold homes to two families who lost everything in the fire and are now looking for a fresh start.

    Other valley real estate agents have also seen wildfire victims searching for new homes in the desert. Scott Ehrens, a Compass agent, recently listed a Palm Springs condo for $1.4 million, which was quickly snapped up by an older couple who had lost their home and possessions in the fire. The couple had been eyeing another property in Palm Springs last year but decided to move quickly after being displaced.

    Ehrens believes that this could be the beginning of a significant wave of migration to the Coachella Valley spurred by the fires, which could cause a shakeup in the area's already pricey real estate market. He thinks people like the condo purchaser who had their eye on the valley before the fire will likely drive the influx.

    However, not everyone is convinced that there will be a large-scale migration to the desert. Geoffrey Moore, a valley real estate agent, has seen no evidence of an increase in demand from the Los Angeles area and believes it's unlikely people will move 100 miles or more away from their established lives. He also points out that the valley's summer weather may be a deterrent for those living on the coast.

    Realtor Greg Tormo suggests that any impact on the valley's housing market will take time to develop, as many wealthier individuals who lost homes already have second homes they can retreat to, while those with less money won't be able to buy a new home until they receive an insurance settlement. Additionally, the jobs people already have and the limited professional opportunities in the desert compared to Los Angeles may also limit the influx.

    The pandemic's effect on the Coachella Valley real estate market is being cited as a possible precedent for what could happen now. However, some agents argue that the situation is different this time around, with many employers requiring employees to return to the office and people prioritizing familiarity and community ties over escaping to a resort-like atmosphere.

    Despite uncertainty about the extent of the impact, Joel Berner, a senior economist at Realtor.com, notes that average rents in the Coachella Valley have increased by $14 since January 4. He expects further upward pressure on rents but acknowledges that the California price gouging law may limit rent increases.