Californians head south of the border to find more affordable housing
The real estate market in Tijuana, Mexico, is seeing a boom from the trend
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Californians looking for lower mortgage or rent payments are increasingly heading south to Mexico for more affordable prices, and the influx of residents has sparked a real estate boom in Tijuana.
The Baja California city is situated just across the border from San Diego, making it an attractive, nearby, alternative home base for Southern Californians feeling a squeeze in their housing budget.
An aerial view of the U.S.-Mexico border, with Mexico on the right, on April 5, 2019, in Tijuana, Mexico. (Photo by Mario Tama/Getty Images / Getty Images)
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According to Apartment Guide, the average cost of a one-bedroom apartment in San Diego is around $2,400, and Realtor.com data shows the median listing price for a home in the city currently sits at $850,000. With prices like that, residents are being priced out and leaving.
"Since the beginning of the (coronavirus) pandemic the number of buyers and people looking to rent a house in Tijuana has increased considerably," Fermín Kim King, president of the Real Estate Association of Tijuana, told KSWB-TV. "There’s a tremendous shortage of housing over there."
The U.S.-Mexico border barrier (R) stands before sunrise on March 30, 2019 in Tijuana, Mexico. (Photo by Mario Tama/Getty Images / Getty Images)
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Sergio Roseti, a former San Diegan who made the move to Tijuana at the beginning of the pandemic, said he had no choice but to relocate.
"Necessity forces us to be south of the border," Roseti told the outlet. "Housing in the United States is extremely expensive, sharing a room costs you $500, a studio is $1,000 minimum, for an apartment it’s $1,500 to $3,000."
"It’s the reason why many people now live here, and the number grows every day," he said. "They migrate to Tijuana because rent is cheaper here."
Vehicles travel along roads in Tijuana, Mexico, on Tuesday, Nov. 9, 2021. (Photographer: Cesar Rodriguez/Bloomberg via Getty Images / Getty Images)
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But if the trend continues, rent in Tijuana might not be cheaper for much longer. The flood of Californians is now driving up the cost in the real estate market there, too, with rents currently ranging from $400 to $2,500 a month.
King explained, "Unfortunately everything is based on supply and demand, we are seeing that rent prices have gone up by 30 percent as low and mid-range housing is now in high demand by Americans coming here."