**Tijuana: The Third Most Expensive City for Housing in Mexico**
As of the second quarter of 2024, housing prices in Tijuana’s metropolitan area have seen an annual increase of 13.1%, marking it as the third most expensive city for housing in Mexico, trailing only La Paz and Los Cabos in Baja California Sur.
Data from the Federal Mortgage Society (SHF) indicates that the current surge in Tijuana’s housing costs is the highest since 2009. Mexicali is experiencing a similar trend with a 12.1% increase, also the second highest since 2009, according to economic analyst Roberto Valero.
Over the past six years, housing prices in Baja California have skyrocketed by 150%. The average cost of a home in the region rose from 766,889 pesos in 2018 to 1,916,894 pesos by the second quarter of 2024. Factors such as inflation, rising construction material costs post-COVID-19 pandemic, and increased interest rates have fueled this surge.
Interestingly, housing costs in Baja California exceed those in other northern border areas, despite slowed housing demand due to longer border crossing wait times for commuters between California and Tijuana.
Roberto Valero, also the president of the Center for Economic Studies of Baja California, criticized the ongoing reform at the National Workers’ Housing Fund Institute (Infonavit), arguing that it fails to address the lack of affordable housing adequately. He emphasized the need to view the issue as an urban development challenge tied to wage levels, advocating for improved salaries to ensure dignified housing.
According to the latest data, Infonavit’s delinquent portfolio in Baja California has soared to 14.948 billion pesos, an annual increase of 4.7%. From 2019 to 2024, the delinquent portfolio grew by 123%, despite efforts from Infonavit to offer easier loan terms and smaller payments.
Valero stressed that Infonavit should collaborate with the government on wage issues to enable more workers to afford better-located and decently sized homes. The average salary in Baja California remains below two minimum wages, the lowest in history, despite the increase in the minimum wage from 88.36 to 374.89 pesos.
**Baja California, Fifth State with Least Affordable Housing**
Over the past year, the number of Infonavit-eligible workers in Baja California almost doubled, from 280,000 to 500,000. However, driving the production of affordable housing remains challenging due to high demand and shortage in housing availability.
According to the National Housing Registry (RUV), only 335 homes in the B2 and B3 categories, priced between 521,481 and 660,106 pesos respectively, were produced in Baja California during the first eight months of 2024. No homes in the Economic and B1 categories were built, making Baja California the fifth state with the lowest production of affordable housing.
From 2018 to August 2024, a total of 36,093 homes were built in Baja California, with 59% in horizontal developments and 41% in vertical ones. Over half of these homes have an area between 45 and 60 square meters.
Ana Lizeth Gómez, the regional delegate for Infonavit in Baja California, explained that reforms within the institution have increased the population eligible for loans. However, not all qualifying individuals are opting for credits. She noted that issues unique to each municipality, particularly land scarcity in Tijuana, complicate housing development for lower economic tiers.
**57,000 Homes Planned for Baja California**
A recent constitutional initiative proposes constructing 500,000 homes nationwide, with 57,000 allocated for Baja California. Ana Lizeth Gómez detailed that work could start in February 2025, post approval from the Union Congress and relevant modifications from Infonavit.
In 2024, Infonavit granted 16,000 credits, with 11,000 being mortgage-related, primarily for people earning between 12,000 and 15,000 pesos monthly. Economic analyst Roberto Valero argued that besides promoting higher-paying jobs, it is crucial to develop productive centers to reduce commuting costs for affordable housing residents.
**External Buyers Driving Tijuana’s Housing Market**
Half of Tijuana’s new homeowners are outsiders, either from the U.S. or other parts of Mexico, with the remaining buyers being local residents. This demand has driven up prices for new developments, while older homes remain comparatively cheaper.
In summary, Tijuana’s housing market is grappling with soaring prices, a surge in loan delinquency rates, and challenges in affordable housing production, underpinning the need for better wages and urban planning to address these issues effectively.
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**Secondary Article: Rising Housing Costs Across Mexico Continue to Challenge Residents**
As housing prices in Tijuana and Baja California soar, other cities in Mexico are also witnessing significant increases.
For instance, La Paz and Los Cabos saw the steepest housing price hikes in 2024, driven by similar factors of inflation, construction costs, and tourism demand.
These rising costs are challenging families, making homeownership increasingly out of reach for many. Experts are calling for comprehensive measures, including economic reforms, targeted subsidies, and incentives for affordable housing developers, to curb these trends and ensure housing remains accessible for all economic classes.
**Continued Monitoring and Strategic Planning Crucial**
With housing prices showing no sign of abating, ongoing monitoring and strategic planning are crucial. Authorities and stakeholders must address these issues head-on to balance housing supply and demand, ensuring sustainable urban development and economic stability.
For more detailed information, follow the housing market trends and expert analysis to stay informed about future developments in the housing sector.