“I would say at least half are coming down from California,” Darrell Graham of Baja123 Real Estate Group told CNBC. “Suddenly the cost of taxes, the crime rates, the politics, all the things that people are unhappy with in California are coming down to Mexico.”
Around 200,000 people leave California and Mexico each day because “many of them work in California and live just below the border in Baja California due to its proximity,” according to the report. In the report, they described this issue as the “California Exodus.”
“It's many commuters that actually reside in Mexico that actually work in America. It's thousands and thousands of people crossing every day. It's a large number of folks,” added Toni Smith who is a personal instructor and coach in Southwestern Community College who works in San Diego and lives in Tijuana.
Alongside the costs of housing which are estimated at $800,000 across the entire state, remote work has offered Californians the chance to look for affordable accommodation at a lower cost in Mexico while reaping rewards of earning money in America.
Travis Grossi, a content creator for Cafe con Leche Travels, claimed that he was able cut his expenses in half once he crossed the border.
“We were able to cut our budget in half, which allowed us to really focus on our careers and the things we wanted to do artistically without the just hustle and hustle every day, every week, every month, to just meet the bare minimum,” Grossi told CNBC.
According to critics, it has rendered housing in Mexico difficult to afford for the Mexican citizens.
“Certain neighborhoods are now becoming too expensive for Mexican citizens to live in because most of the time people that are actually buying the property developments are being able to do so because they either make money in US dollars, or because they are working remotely,” said an analyst working on policy at the Migration Policy institute, Ariel Ruiz Soto.
Over 367,000 residents relocated from California in 2021. Most of them went to states like Arizona, Washington, and Texas. The decrease in the state's population of 1% was among the biggest in the nation.