Two Cities, One Border, Very Different Paths to Homeownership

San Diego and Tijuana are about 20 miles apart. The median home price in San Diego is over $800,000. In Tijuana, you can buy a decent house for $150,000, sometimes less. In recent years, a growing number of Americans have been doing exactly that: buying in Tijuana and commuting across the border to work in San Diego.

The New York Times wrote about this in 2022 and it is a story I find genuinely interesting, not because I think everyone should move to Mexico but because it illustrates just how extreme the affordability problem has gotten in Southern California.

Inspired by: The New York Times, July 25, 2022

What is Actually Happening

Americans, mostly younger buyers and remote workers, have been purchasing homes in Tijuana's developing neighborhoods. The commute to San Diego takes anywhere from 20 minutes to over an hour depending on border wait times. For people priced out of San Diego entirely, that tradeoff is starting to look reasonable.

There are real complications of course: foreign ownership laws in Mexico, financing (U.S. mortgages do not apply), title security and the practical realities of border crossing every day. It is not a simple decision and it is not for everyone. The fact that it is happening at all, however, says something.

What It Says About Our Market

When homeownership in a major American city becomes so unattainable that people are crossing an international border to find it, something has gone seriously wrong with housing supply. Southern California has been under-building for decades. Zoning restrictions, permitting timelines and community opposition to new development have created an artificial scarcity that keeps prices elevated regardless of interest rate changes.

Orange County has the same dynamic. Brea, Fullerton, Yorba Linda: these are not cheap markets. Entry-level homes routinely start above $700,000. The people who are getting priced out are not irresponsible or unqualified. They are nurses, teachers, tradespeople, young professionals doing everything right. The math just does not work at today's prices and rates.

So What Do You Do?

I am not telling you to move to Tijuana. It is worth being honest, however, that homeownership in coastal Southern California requires a realistic plan and sometimes that plan includes waiting, saving or looking further inland than you originally imagined.

A few things I tell clients in this situation:

1. Do not let the perfect be the enemy of the good. Your first home does not have to be your forever home. Getting into something, even if it is smaller or further east than you would like, starts building equity.
2. Get pre-approved so you know your real number. A lot of people assume they cannot afford anything here and have not actually checked. Sometimes they are right but sometimes there is more room than they thought.
3. Renting is not losing. If the numbers genuinely do not work, staying patient and building your down payment is a legitimate strategy. Rushing into a payment you cannot comfortably handle is worse than waiting.

Happy to talk through your specific situation anytime.

Rates shown are for illustrative purposes only and are not a commitment to lend. Actual rates depend on credit profile, loan type, property type and market conditions. Not all borrowers will qualify.