Rental prices in the Mexican border town of Tijuana are poised to rise sharply, as construction costs have increased by 50% this year, according to the Association of Real Estate Professionals of Tijuana (APIT).
The surge in construction costs is being driven by rising labor and material costs, as well as a construction boom fueled by the influx of workers from San Diego.
“I’m talking about at least 50% more,” said Kim King, former chief of the APIT. “Even with that, we’ve been able to see a lot of activity due to the number of buildings that are being built in the municipality.”
Data from APIT shows that there are more than 23 real estate projects for sale in Tijuana, with a total of 2,760 units.
The cost of construction per square meter ranged from 6,000 to 14,000 pesos (US$321 to US$768) before the pandemic. It has since risen to over 21,000 pesos (US$1,100).
The rising cost of construction is also pushing up rentals across the city. According to the US publication KBPS, rent prices in Tijuana have risen twice as fast as in San Diego in recent years.
“Between 2016 and 2022, rents in Tijuana increased by 63%, while rents in San Diego rose by 30%,” the publication stated.