Desert Highland Community Land Trust Brings Affordable Housing to Palm Springs

Palm Springs is known for its world-class resorts, midcentury modern architecture, and growing popularity as a tourist destination. But for residents, especially those in historically Black neighborhoods like Desert Highland Gateway Estates, the city’s soaring housing prices have created new challenges. In recent years, homes in this tight-knit community have sold for anywhere between half a million and more than a million dollars, leaving many long-time residents and first-time buyers priced out of the market.

Against this backdrop, a new project from Neighborhood Partnership Housing Services (NPHS) is bringing hope and stability. The nonprofit recently announced the Desert Highland Community Land Trust Development, a project designed to create permanently affordable housing in one of Palm Springs’ most culturally rich and historically significant neighborhoods.

The development will feature six eco-friendly, factory-built single-family homes, each with three bedrooms, two bathrooms, and a two-car garage. Spread across three sites on Tramview Road, El Dorado Boulevard, and Rosa Parks Road, the homes are designed for families earning 80 percent or less of the area’s median income. Construction is expected to begin in late 2025, with families moving in by fall 2026.

What makes this project especially significant is its use of a Community Land Trust (CLT) model. Through this approach, the land remains in trust ownership while families own their homes, ensuring that the properties remain affordable not just for the first buyers, but for generations to come. NPHS has committed to keeping these homes affordable for at least 99 years, preserving long-term stability in a neighborhood where speculation and rising property values have threatened to push out long-time residents.

The need for projects like this could not be clearer. In Desert Highland Gateway Estates, median home prices are now hovering around $600,000, with some sales climbing much higher. Redfin data shows home values in the area have jumped by more than 80 percent in the past year, with price-per-square-foot figures up nearly 144 percent. For a neighborhood where average household income is around $71,000—and where more than half of residents rent—these numbers highlight a crisis of affordability.

When it comes time to sell, homeowners agree that the maximum sale price they will receive will be calculated based on what was paid initially, plus an annual increase based on a change in area median income. The price of the home is tied to the paycheck, not the market.

For Desert Highland, the NPHS project represents more than just new construction. It is a commitment to protecting a community with deep roots in Palm Springs’ Black history, where families have lived, worked, and built their lives for generations. By anchoring these homes in a land trust, NPHS is ensuring that affordability will remain intact even as the broader market continues to heat up.

At a time when housing costs threaten to erase the very fabric of neighborhoods like Desert Highland Gateway Estates, the Community Land Trust offers a blueprint for inclusive development. It is a reminder that Palm Springs can grow while also protecting its history, culture, and residents who have long called this desert city home.