TIJUANA.- Recently, at the Real Estate Business Summit in Puebla hosted by Inmobiliare magazine, Mexico's ex-Secretary of Finance and Public Credit Pedro Aspe mentioned that the next sector of the housing market to receive growth will be the rental housing market. In my line of work as a real estate adviser, day after I day I see this reflected in Tijuana as I receive calls from prospective renters looking for a house or a condominium, which are in scarce supply in the city.

During the last few years, Tijuana has become a greater economic force regionally and one of the effects of that has been the service sector relocating regional headquarters to this city, whereas previously, Tijuana depended on cities like Hermosillo, Guadalajara, and Monterrey. The relocation trend brings with it high-level executives who typically rent housing since they tend to relocate often because of the nature of their work. In other scenarios, they decide to rent upon arriving in a city to get a feel for different neighborhoods before deciding where to buy.

The re-surge in the maquiladora sector is another driving factor pushing the rental market. In terms of competitivity, Mexico had lost out to China, which caused this sector to slump. But, in recent years, the increase in labor and energy costs in China have helped Mexico regain ground and once again be an excellent option for this industry. As a consequence, we are receiving executives from all parts of the world that need a place for themselves and their families. A great advantage of the rental market is that, in many cases, the companies themselves pay for rent, at a good price.

Another important factor is that of the security situation in Tijuana. As security has notably improved, we have seen two positive results in the region. One is that many residents in Tijuana who had fled to live in San Diego have now returned to the city to be closer to their family or their businesses.

On the other hand, a new trend is that some Hispanics and Americans primarily of middle and lower-middle income classes have decided to live in Tijuana without having ever lived here before for many reasons, mainly because the cost savings in rent and other expenses, which could result in savings of up to 50%. The recent reduction in border wait times to cross to San Diego will make the option of living in Tijuana even more attractive. One common question I get from neighbors to the north is, "what are the requirements to rent in Tijuana?" The answer is basically the same as in the U.S., except that here you are normally required to have a co-signor, which can often times be substituted for a credit report and/or a month of additional rent.

In summary, we are seeing Tijuana receiving high demand for rental housing on a daily basis, and for various sectors of the market. One sector is that of centrally located condominiums and apartments, ranging from between $450 and $750 dollars a month, and the other is that of high level housing for executives in exclusive neighborhoods ranging from $1,200 to $2,500 dollars a month. Tijuana offers many benefits to its residents: good weather, quality of life, entertainment, proximity to the U.S., and much more.

Apart from being in love with Tijuana, Genaro spends his free time as a commercial real estate broker for Bustamante Realty Group. He can be reached at genaro.valladolid@brg.mx

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