If you’re eyeing the Palm Springs region to launch your next venture, you’re already thinking
smart. This sun-soaked stretch of Southern California isn’t just for weekend getaways—it’s also
surrounded by business-friendly cities with lower startup costs, access to talent, and growing
local economies. While Palm Springs has its own appeal, nearby cities offer even more
attractive advantages for entrepreneurs looking to stretch their dollars and scale efficiently.
Below, we’ll break down the top cities near Palm Springs where starting a business is not only
viable—but strategic. Whether you’re building a boutique brand, launching a tech startup, or
opening a niche coffeehouse, these cities balance lifestyle, cost, and opportunity.

Why Consider Cities Near Palm Springs?

Palm Springs is iconic, no doubt—but it’s not the cheapest or most scalable base for a new
business. The cities surrounding it offer many of the same benefits—sunshine, tourism, real
estate options—often with a lower cost of entry, fewer regulatory hurdles, and more room for
growth. Here’s what to look for:
● Access to workforce and consumers
● Affordable commercial real estate
● Local government incentives for businesses
● Infrastructure and transportation
● Quality of life for you and your team

Let’s dive into the cities worth putting on your radar.

Palm Desert: The Business-Friendly Desert Gem

Distance from Palm Springs: ~14 miles
Population: ~53,000
Palm Desert is a fast-growing, business-minded city with a healthy mix of residents, tourists,
and retirees. What makes it especially attractive for entrepreneurs is its pro-business policies
and zoning flexibility. The city actively supports small business development, with resources like

the Coachella Valley Small Business Development Center and streamlined permitting
processes.
Why it’s a top choice:
● Higher median income than Palm Springs meaning more consumer spending
● Several business parks and retail corridors
● Strong support from the Palm Desert Chamber of Commerce

Best for: Retail, hospitality, wellness, and professional services

Cathedral City: Affordable and Entrepreneur-Friendly

Distance from Palm Springs: ~7 miles
Population: ~52,000
Cathedral City is often overlooked—but shouldn’t be. With some of the lowest commercial lease
rates in the valley and active city-level support for entrepreneurs, this is an ideal place to test
new concepts without burning through your capital.
Why it stands out:
● Opportunity zones and potential tax advantages
● Revitalized downtown area creating more foot traffic
● Diverse population with year-round residents

Best for: Food & beverage, local services, early-stage startups

Indio: Growth, Growth, and More Growth

Distance from Palm Springs: ~23 miles
Population: ~95,000
Indio is the fastest-growing city in the Coachella Valley—and the one with the biggest business
upside. Home to major events like Coachella and Stagecoach, Indio’s brand awareness is

skyrocketing. But there’s more beneath the surface: a young population, a city council
prioritizing economic development, and increasing demand for year-round services.
Why entrepreneurs are flocking here:
● Access to a younger, tech-savvy demographic
● City-led initiatives to attract small businesses
● Upcoming infrastructure and downtown development projects

Best for: Event-based businesses, creative services, tech-enabled ventures

La Quinta: Upscale with a Niche Opportunity

Distance from Palm Springs: ~20 miles
Population: ~40,000
La Quinta has an upscale vibe that attracts high-net-worth residents and seasonal tourists.
While not the cheapest place to set up shop, it’s ideal if you’re building a premium brand. The
city has been investing in its economic development plan, including improved walkability and a
business-friendly licensing system.
Why it’s worth considering:
● Strong residential median income and tourism overlap
● Niche retail and wellness brands thrive here
● High foot traffic in commercial hubs like Old Town La Quinta

Best for: Luxury services, boutique retail, wellness and fitness studios

Rancho Mirage: Corporate Meets Resort Town

Distance from Palm Springs: ~11 miles
Population: ~17,000

Rancho Mirage blends corporate elegance with resort-town energy. If your business model
serves an affluent clientele—think healthcare, legal services, or luxury goods—this city offers a
stable, supportive environment with a reputation for excellence.
Why it works for business:
● Home to major healthcare institutions and corporate retreats
● Well-maintained infrastructure and public amenities
● Opportunities for B2B service providers

Best for: Health & wellness, B2B consulting, luxury markets

Desert Hot Springs: Budget-Friendly with Long-Term Potential

Distance from Palm Springs: ~12 miles
Population: ~32,000
Desert Hot Springs offers some of the lowest real estate prices in the region—perfect for early-
stage businesses on a tight budget. While the local economy is still developing, the city is
rapidly evolving, especially in sectors like cannabis, wellness, and residential services.
What makes it intriguing:
● Fast-growing population and affordable property
● Permissive policies for emerging industries like cannabis
● Opportunity to establish early market leadership

Best for: Cannabis, wellness, real estate services, trade-based businesses

Comparing the Cities: Quick Snapshot

Final Thoughts: Picking the Right Launch Pad

Starting a business is part strategy, part gut instinct. The Palm Springs area offers more than
just good weather—it offers a diverse ecosystem of cities where entrepreneurs can find their
ideal balance between affordability, opportunity, and lifestyle. Whether you’re bootstrapping a
startup or expanding an established business, these nearby cities each bring something unique
to the table.
Pro tip: Talk to the local chambers of commerce or SBDC offices in these cities—they often
have grants, tax breaks, or mentorship programs flying under the radar.
In short? You don’t have to go far from Palm Springs to find a city that wants your business to
win.