Mexico #1 Destination For Vacation Home And Investment Properties For Americans

American buyers rate Mexico as their #1 destination for vacation home and investment property purchases. Point2, a real estate brokerage and marketing company analyzed more than 2,000 google keyword searches from June 2022 to June 2023 to produce the top destinations searched by Americans. Mexico remains #1 city in 2023 with 3% increase in searches from 2022 down from a record 60% growth in 2022 searches after the COVID-19 pandemic. Mexico was the #1 destination in 2022, 2021 and 2018.  Canada is the #2 choice showing a record +54% increase in google searches over 2022, Costa Rica was #3 and Puerto Rico #4 most popular destination. Destinations with the largest increase in interest for vacation home and investment property purchases was Ecuador (+42%) and Argentina (+40%).


What is the current Puerto Vallarta real estate market? We contacted several top real estate agents to get an update on market real estate trends. Warren Brander of Warren Brander Realty Group states ” The Puerto Vallarta real estate market continues to be strong.  During Covid it was a seller’s market. Right now it is not really a seller’s market or buyer’s market right.  We are noticing a more balanced market, which can be attributed, in part, to higher interest rates in the U.S. and Canada.  Prices are holding steady and we do not predict any major increases in prices this year.  Resale inventory is still low, however, pre-construction inventory is increasing which is helping to enforce the balanced market.   The next elections north of the border could bolster the housing market (as has in the past) depending on the outcomes.

Sarah Elengorn of Elengorn Realtors reports “Although the overall volume rate of sales has decreased from last summer after COVID, the highest volume on record, the market is still very strong in key areas. With us, it is still a seller’s market in the Romantic Zone area with low inventory and properties not on the market long, especially for specific products (ie. Resales in established, reputable and rent friendly buildings continually producing an income). We’ve seen a general overhaul on pricing, more specifically in the pre-construction developments, with developers now advertising and promoting in our national currency, Mexican pesos to help mitigate against huge material cost deviations. This recent change has helped the national market expand further and should please our Canadian friends up north who will now be able to purchase here in pesos without having to exchange to USD.  We still feel Vallarta has something to offer everyone and new areas are expanding to cater for this demand. It is an exciting time to be active in the real estate market in PV.”

According to Joshua of Remax Romantica, “In Puerto Vallarta, the summer season brings with it a heavy dose of humidity, but it also signals the arrival of the vibrant rainy season, breathing life into the lush jungle. As we stepped into the year 2023, the post-COVID boom era began to find its footing, gradually stabilizing. While the demand for property remains significant, the frantic urgency that once characterized the market has now settled into a more balanced state, indicative of a healthy market.  The allure of Puerto Vallarta persists, as properties continue to provide significant return on investment (ROI) and increases in property values. These factors contribute to the unwavering strength of the real estate market. The Romantic Zone and South Shore, in particular, witness a surge in demand, with specific sought-after buildings becoming highly coveted. Looking ahead to the 2023/2024 season, we anticipate a bustling and prosperous period. The Puerto Vallarta real estate market is poised to expand and flourish, driven by the unwavering confidence of investors and the ever-growing appeal of this enchanting destination.

Wayne Franklin from Tropicasa Realty noted “Vallarta’s real estate market seems to be in a somewhat precarious position.  Most significant indicators indicate that the market remains strong.  Median sales price increased in both homes and condos in YTD calculations between January to the end of August of 2023 vs. 2022.  Homes showed a median sales price of $410K USD, which was an increase of 19% over the previous year, and condos reflected a 20% increase from $292K to $342K USD.  Median “Days on Market” also reduced by 10% and 9% for houses and condos, respectively.  Sales prices in comparison to list prices also remained quite strong with the annual average for condos being 100% of the list price, and 97% for homes.  But here’s the rub.  While median list prices also increased for homes at a whopping 30% and for condos at a 20% increase, the overall sales volume has dropped significantly.  Total volume for houses dropped by 40% and for condos 39%.  There are many factors that can contribute to this, but it seems that given the apparent strength in the market, despite dropping volume figures, that the lack of inventory in both categories under $500,000 is having a significant downward pressure on sales.  As we all know, much of the inventory at this point is new construction, but the lack of inventory being put on the market for under $500K could be a major factor in the ultimate sales volume figures.  This is reflected by the significant reduction in the number of sales in certain categories of pricing under $500K.  It would seem the market continues to have an appetite for these properties, but they are becoming increasingly difficult to find.  In the end, we still have an absorption rate in both houses and condos under 12 months, which is another sign of a healthy real estate marketplace.




  • GayPV Magazine 35th Edition – May 2023

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