For years, Canadian and United States retirees in Mexico have flocked to Mexico as an alternative destination for their retirement abroad that is affordable, has a pleasant climate and is close to their home communities in North America, according to International Land Alliance.

This company is dedicated to residential land development with target properties located in Baja California, the northern region of Mexico and Southern California.

These attributes have made Mexico the top overseas retirement destination for older Americans.

The real estate boom in this segment in Mexico was reached in 2005/06 and extended from Playas de Tijuana-Rosarito and Los Cabos along the Baja California peninsula and from Puerto Peñasco (Sonora) to Mazatlan (Sinaloa).

In southern Mexico, the real estate sector has focused on expanding the corridor from Cancun to the Riviera Maya.

International Land Alliance believes that Mexico remains a viable retirement option for Americans age 50 and older, as it offers a reduced cost of living, lower health care costs, and proximity to friends and family in the United States.

United States retirees

In addition, according to the same firm, more than half of those surveyed noted that their motivation for purchasing a home in Mexico was based on their desire to own a home on or near the coast that would otherwise be unattainable in the United States.

In addition to U.S. and Canadian citizens, Baja California has experienced a notable increase in business from Japan and Europe.

Demand has also been driven by international buyers from California seeking affordable alternatives for retirement.

Due to the severe housing shortage, CoreLogic data shows that the median price of a Southern California home, or the price at the midpoint of all sales, was $706,000 in February 2022, this is 15.4% higher than in February 2021.