Buying a Home in Baja California Sur Is Becoming More Expensive as Housing Prices Rise 11.1% in One Year

Baja California Sur has ranked among the Mexican states with the highest increase in housing prices during the first quarter of 2026. The average price of a home in the state now exceeds 2.8 million pesos, reflecting an increase of more than 11% compared to the previous year.

Baja California Sur remains one of Mexico’s most expensive real estate markets, with the average home price now exceeding 2.8 million pesos.

La Paz, Baja California Sur. Purchasing a home in Baja California Sur now requires a significantly larger investment than it did a year ago. During the first quarter of 2026, housing prices in the state increased by 11.1% compared to the same period last year, surpassing the national average and placing Baja California Sur among the fastest-growing real estate markets in Mexico.

According to the Federal Mortgage Society (Sociedad Hipotecaria Federal, SHF) Housing Price Index, the average value of homes purchased through mortgage financing nationwide rose 8.7% between January and March 2026. In Baja California Sur, however, the increase reached 11.1%.

The average price of a home in the state now stands at 2.813 million pesos, well above the national average of 2.024 million pesos recorded during the same period.

La Paz and Los Cabos Continue to See Strong Growth

The rise in housing prices extends across the state's major municipalities. La Paz recorded an annual increase of 11.2%, while Los Cabos posted a 10.9% gain, according to the SHF report.

These figures indicate that the appreciation of residential property is not limited to tourist destinations but is also affecting the state capital, where housing demand and ongoing urban development continue to drive market growth.

Among Mexico’s Most Expensive Housing Markets

Nationally, Mexico City continues to have the country's highest average home price, exceeding 4.3 million pesos per property.

Baja California Sur, however, remains among the states with the highest housing values, ranking above Querétaro, Baja California, and Nayarit in average residential property prices.

By comparison, states such as Tlaxcala continue to offer some of the country's most affordable housing, with average home prices just above 1 million pesos.

Growth Above the National Average

The SHF report shows that 16 of Mexico's 32 states recorded housing price increases above the national average during the first quarter of 2026. Baja California Sur joined states such as Jalisco, Quintana Roo, Nayarit, Aguascalientes, Tamaulipas, and Baja California in posting annual increases exceeding the national trend.

Across Mexico, new homes appreciated by 9.1%, while existing homes increased 8.3%. Detached houses saw a 9.2% rise in value, whereas apartments and condominiums recorded an 8.2% increase.

Real Estate Market Continues Upward Trend

With an average home value exceeding 2.8 million pesos, Baja California Sur continues to strengthen its position as one of Mexico's most expensive real estate markets. First-quarter 2026 data show that both La Paz and Los Cabos remain above the national average in housing price growth, highlighting the increasing challenges faced by families looking to purchase a home in the state.