Market Contrast in Tijuana, Baja California
The housing market in the border town of Tijuana, Baja California, is experiencing a paradoxical situation: while average prices reach historical levels, the majority of demand remains concentrated in lower-value segments.
According to data from 4S Real Estate, in Tijuana and Rosarito, there are currently 2,282 apartments for sale with an average price of nearly 6 million pesos. Of this total, 72% exceed 4 million pesos, indicating that the offer is aimed at high-income individuals and excludes thousands of families with lower budgets.
Luis Delgadillo’s Perspective
“Construction is targeted at a premium niche, while thousands of families with lower budgets are left without options, even though the real demand is for homes below 4 million pesos. This is the big gap in the market and also the major opportunity for those who can address it,” commented Luis Delgadillo, regional partner MX/Noroeste of 4S Real Estate.
Market Cliff
The lack of affordable housing projects has led to a rise in resale home purchases. In 2024, 61% of Tijuana’s housing purchases corresponded to the second-hand market, a trend that continued amidst the shortage of new offerings in mid-range segments.
This phenomenon is also driven by the rapid price increase. In some developments, the square meter can reach 120,000 pesos, nearly double its cost five years ago. This dynamic, according to the expert, “leads to the infamous market cliff, meaning that prices become so inflated that sales cease.”
The projected placement indicates that around 44,000 homes will be sold in Tijuana in 2025, according to 4S, which represents a decrease compared to the previous year.
“The opportunity lies in creating projects that stand out for location, architecture, and the ability to meet the real market needs, whether for those wanting to live in the city or the medical and business tourism that characterizes the area,” Delgadillo pointed out.
Rental Changes
In recent years, many housing acquisitions in Tijuana were made by investors, attracted by the high rents promised by the market.
However, the scenario has changed. Delgadillo noted that a department could be rented within days until recently; today, inventory takes up to seven months to find a tenant.
Moreover, properties expecting to earn up to 3,000 USD monthly often close with two-thirds unoccupied, directly affecting investors’ annual returns.
A significant aspect is the change in market profile: while acquiring housing as an investment was predominant in previous years, for 2025, more people are looking to buy for habitation.
- Q: What is the current housing market situation in Tijuana? The market is experiencing a paradox where average prices are at historical levels, but the majority of demand remains in lower-value segments.
- Q: How many apartments are available for sale in Tijuana and Rosarito? There are currently 2,282 apartments for sale.
- Q: What percentage of available apartments exceed 4 million pesos? 72% of the available apartments exceed 4 million pesos.
- Q: What trend has emerged in Tijuana’s housing purchases? There has been a rise in resale home purchases, with 61% of Tijuana’s housing purchases in 2024 corresponding to the second-hand market.
- Q: How has the rental market changed in Tijuana? The rental market has shifted, with properties taking longer to find tenants and investors experiencing decreased annual returns.
