Strong peso prompting Tijuana landlords to reject US dollars from tenants

SAN DIEGO (Border Report) -- Tanya Montalva Álvarez, the president of Baja's Property Professionals Council, says business and property owners in Tijuana who once asked rents be paid in dollars, are tearing up lease agreements and are now demanding pesos.

The Mexican currency has remained strong against the U.S. dollar since the middle of last year. According to XE Money Exchange, the dollar's value versus the peso has dropped by almost 10 in one year.

It shows the exchange rate now is about 16.39 pesos per dollar. At this time last year, it was 18.33 per $1; at the start of 2023, it was almost 20 pesos per $1.

For many American workers who live in Tijuana and are paid in greenbacks, their dollars aren't going as far as they did a year ago.

"During the course of 2024, I believe we're going to keep seeing this type of behavior, many property owners getting away from the dollar preferring pesos," said Montalva Álvarez. "Others have simply hiked the rent to make up for the weaker dollar as a way to avoid losses."

She says in spite of this practice, people continue moving from California driving up the cost of rents for everyone in Tijuana.

"Many areas in Baja California remain attractive to those who want to find more affordable housing and there are many leasing opportunities for those people," said Montalva Álvarez. "The real estate and commercial market in Tijuana remains very strong and a good investment."