Why Californians Are Fleeing To Mexico

Why Californians Are Fleeing To Mexico

Why Californians Are Fleeing To Mexico

In 2021, over 360,000 people left California in what many are calling The California Exodus. But a rising number of them are migrating out of the country all together and instead, heading south to Mexico to escape rising housing prices, traffic and expensive healthcare.

Take a closer look at David and Travis’ lives in Mexico:    / caféconlechetravels  

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Why Californians Are Fleeing To Mexico


Content

1.11 -> In 2021, over 360,000 people left California in what many are calling the
7.98 -> "California exodus", leaving for states like Texas, Arizona and Washington.
13.68 -> But a rising number of them are migrating out of the country altogether
17.73 -> and instead heading south of the border.
20.64 -> Today, more and more Americans are leaving the hustle and bustle of
24.9 -> California for a relaxed, more affordable lifestyle in Mexico.
30.03 -> We were able to cut our budget in half, which allowed us to really focus on our
33.87 -> careers and the things we wanted to do artistically without having to just
38.55 -> like, hustle and hustle and hustle every day, every week, every month to
42.57 -> just meet the bare minimum.
44.43 -> California's population growth has been declining for over 30 years now, but
49.8 -> thanks to the rise in remote work, due to the Covid-19 pandemic, those trends
54.87 -> have accelerated.
56.01 -> The ability to work anywhere has 62% of Americans considering moving to a new
61.8 -> country.
62.76 -> What's the options?
63.78 -> Right? What? Kansas, you know, Utah, whatever.
67.95 -> I mean, really, it's the options aren't that great.
70.44 -> I mean, especially if you're from California.
72.69 -> And while some Californians are able to make the move by working remotely,
76.98 -> others are living in Mexico, but still commuting to work daily in California.
82.29 -> It's a lot of people commuting who actually live in Mexico, who actually
87.18 -> work in the States.
88.26 -> So it's like, it's thousands and thousands of people just cross in daily.
93.84 -> It's a lot of people.
95.1 -> However, many critics argue that Americans are driving up the cost of
99.27 -> housing for locals and pricing them out of the market.
102.96 -> So just how long will this migration trend last and what are the
107.43 -> consequences?
113.59 -> When it comes to U.S.-Mexico migration, most Mexicans move to the U.S.
118.15 -> to improve their lives economically.
120.37 -> But a lesser known fact is that historically, Americans have flocked to
124.9 -> Mexico for the same reason.
126.94 -> After Mexico won its independence from Spain in 1821, thousands of legal and
132.76 -> illegal American immigrants settled into northern Mexico in search of land,
137.38 -> trade and agricultural opportunity.
140.2 -> And when Mexico abolished slavery in 1829, a few routes of the Underground
145.39 -> Railroad ran south into Mexican Texas.
148.39 -> It's estimated that about 5-10,000 slaves escaped into Mexico.
153.46 -> By the mid-1840s, Americans outnumbered Mexican Californios in the northern part
159.22 -> of Alta, California, which was Mexican territory at the time.
164.14 -> Shortly after, the California gold rush began and 30,000 people from all over
169.42 -> the world poured into California in search of treasures.
172.87 -> Just days after the California gold rush began, the Mexican-American War ended,
178.06 -> giving California, Arizona, New Mexico, Texas, Colorado, Nevada and
184.6 -> Utah to the U.S.
186.04 -> It wasn't until 1924 that the US Border Patrol was created, and since then,
191.8 -> millions of Americans have visited, vacationed and relocated to Mexico.
197.14 -> As of 2020, 800,000 Americans are living in Mexico.
201.91 -> These migrants can be divided into three categories: retirees, working
207.01 -> professionals and the biggest share of the population...the Mexican Americans
211.57 -> returning to their roots.
213.19 -> There's also a parallel migration, of course, from U.S.
217.08 -> Citizen children that are being returned or that are returning to Mexico with
221.05 -> their parents, who many of them are Mexican citizens are being either
224.95 -> repatriate or deported to Mexico as well.
227.5 -> These U.S. Citizens make up about two-thirds of the U.S.
231.2 -> immigrant population in Mexico and so therefore their future is in the
235.15 -> children growing up and integrating into Mexican society is an important
238.93 -> factor.
239.59 -> The rising migration of U.S.
241.52 -> Citizens is giving way to increasing investments and development, which in
246.46 -> turn creates opportunity for more Americans to make the move.
252.81 -> The rising cost of living is perhaps one of the biggest drivers behind this
256.95 -> phenomenon. California ranks number two in the country's most expensive states
261.96 -> to live in, according to a study by Credit Karma.
264.9 -> For our one-bedroom apartment in North Hollywood we were paying $1600 a month
269.58 -> and that was just for the rent alone.
272.46 -> And there we had a car, so that included car insurance and car payment
276.6 -> and all of those kinds of things that you have to pay for.
280.35 -> And so just the rent alone, we're paying half of that.
285.57 -> We moved in November of 2020, so it was still kind of like in the thick of
290.34 -> Covid-19 and the pandemic before the vaccines.
293.49 -> So our rent is about $850 USD a month, which includes two bedrooms, three
299.91 -> bathrooms, a music studio for David.
303 -> We have a pool and a clubhouse area, 24-hour security with a guard at a
308.88 -> gate.
309.54 -> Going from a one-bedroom where we were like on top of each other to having
314.37 -> different spaces to work has been like life changing.
317.16 -> And to do that, half of the price was mind blowing.
321.9 -> Real estate in California is getting more expensive and more competitive.
326.43 -> The median price for a home in California is about $800,000.
331.2 -> Only 25% of California households could afford that in the fourth quarter of
335.82 -> 2021.
336.9 -> Here in Baja, we offer a more affordable alternative, bigger
343.11 -> prices. And what a lot of people tend to say is that we have a better
349.56 -> quality of life.
350.88 -> You know, there's no traffic, there's sunny days, there's beautiful beaches.
357.72 -> Unlike the jobs in California, Mexico's wages are low and labor is cheap.
362.7 -> The minimum wage in California is $15 per hour, while the minimum wage in the
368.01 -> majority of Mexico is 172 pesos per day, which is equivalent to about
374.13 -> $8. For comparison, one hour of working in California is equivalent to almost
380.64 -> two whole workdays in Mexico.
383.34 -> We do want to say, like we understand how lucky and fortunate we are to be
386.76 -> able to earn in dollars and spend in pesos.
389.97 -> So we do recognize that that's like an incredible privilege and we feel super
394.32 -> grateful to be here and to be able to do that.
397.08 -> Health care is another important factor that many consider when moving to
401.04 -> Mexico. The U.S.
402.42 -> spends much more on health care than any other country in the world.
406.65 -> But one study showed that overall, its performance and quality ranks last among
412.53 -> the highest income countries.
415.02 -> You know, I got dental work and stuff.
418.38 -> I mean, Mexico is responsible for saving my teeth.
421.41 -> I went to an allergist in LA and was told I was not did not have enough money
427.62 -> to afford the allergy shots that I actually needed.
430.5 -> And that was one of the first appointments I made in Mexico was with
433.77 -> an allergist and a dermatologist.
435.99 -> And not only can I afford allergy shots here, but like my allergist coordinates
439.89 -> with the dermatologist who coordinates with our primary care physician.
442.8 -> Yeah, I had to get hard contacts and braces.
446.85 -> I felt very cared for and it was very easy to access these kinds of things
451.08 -> that I know I could not get the contacts that I needed because they were
455.82 -> so expensive in the States and we thankfully were able to do that here.
460.11 -> Since the pandemic, migration trends to Mexico have accelerated.
464.94 -> Covid-19 has made remote work the new normal, prompting many to move out of
470.37 -> big cities and into more affordable ones.
473.55 -> The pandemic really changed the dynamic, but because folks suddenly the cost of
479.7 -> taxes in the U.S., the crime rates, the politics, the all the things that people
485.61 -> are unhappy with in California are wanting to come down to Mexico and
490.02 -> suddenly realize, gee, I can—as long as I get good Internet, I can come to
493.17 -> Mexico and buy a, live in a condo and stare at the ocean and take care of my
497.4 -> work and enjoy a different lifestyle.
504.17 -> This is the U.S.-Mexico border in Tijuana.
507.53 -> Every day, about 200,000 people commute between the two countries.
512.48 -> Many of them work in California and live just below the border in Baja,
517.25 -> California due to its proximity, take Toni Smith, for example.
521.84 -> She works in San Diego but lives nine miles away in Tijuana.
526.49 -> I still work in the States.
528.26 -> I'm a coach over at a community college and all of my business is in the States,
534.92 -> so I commute daily back and forth.
538.61 -> The wait to get through the border ranges from a few minutes to a few hours
543.53 -> . To avoid the longer wait times during rush hour, Toni drops her car off in a
548.45 -> parking structure by the border and walks the rest of the way.
552.38 -> On days that are not heavy traffic.
555.5 -> I'll drive and then days where it's really like hectic, like the average,
560.48 -> like Mondays, Wednesdays, Fridays, those are the busy days...I will leave
565.58 -> my car and I'll just walk.
567.26 -> It's easy getting into Mexico.
569.63 -> It's just the difficult part: getting out of Mexico, which can take hours.
574.88 -> But I learned if I could just commute by foot, it drops my commute time at
580.7 -> least by 2 hours.
582.44 -> Real estate agents in Baja, California are also seeing an increase in people
587.12 -> looking to buy property who don't necessarily want permanent residency in
591.62 -> Mexico.
592.52 -> I would say at least half or probably coming down from California.
596.39 -> There's a lot of folks that have second homes down here, vacation homes and or
600.98 -> rental properties down here that come from southern California.
605.6 -> Critics of this migration trend say that Americans are buying or renting property
611 -> in Mexico at a premium and pricing locals out of the market.
615.41 -> Certain neighborhoods are now becoming too expensive for Mexican citizens to
619.43 -> live in because most of the times people that are actually buying this
623.24 -> property developments or buying even, say, an apartment are being able to do
627.35 -> so because they either make money in U.S.
629.55 -> Dollars or because they're working remotely.
631.73 -> For those on temporary visas, working remotely allows them to continue paying
636.86 -> their taxes to the U.S.
638.65 -> without paying any to Mexico.
641.09 -> And there are some parts of Mexico known as the "tourist libre zone" where
645.47 -> visas go unchecked under the radar.
648.26 -> The idea is that Americans who spend their money in Mexico are still
652.28 -> contributing to the country's economic growth.
654.95 -> It's just a dog eat dog world.
657.38 -> And I get why a lot of Mexicans, you know, they want better for their
662.45 -> families. So they're trying to get across the border to America while the
667.7 -> Americans are doing the total opposite.
669.74 -> I feel as though like the money that we're bringing in can definitely help
674.36 -> build better roads.
676.46 -> We're just definitely helping the economy by just bringing in the dollars
680.3 -> so that they can put it into whatever it is that they want to put it into.
685.82 -> It's super important to us to mitigate our economic impact wherever we go, and
690.32 -> we try to do that by highlighting local groups and services, small businesses,
695.57 -> and we're super conscious of where we spend our money.
697.79 -> Some argue the communities where Americans are moving to are not the same
702.71 -> as the ones where locals reside.
704.72 -> Those areas have less crime, are more expensive, and tend to be closer to
709.97 -> beaches and other tourist attractions.
712.82 -> The foreigners or the Americans are only going to live in certain places and
716.57 -> these places are primarily targeted towards Americans.
721.28 -> The local Tijuana people are not going to live in these places, like there's
726.74 -> high rise buildings and stuff like that.
728.96 -> The apartment I had last time that had a full desk set up for remote working
735.53 -> office chair, everything.
737.3 -> This was not something set up for a Mexican family, this was something set
741.05 -> up to target foreigners to come over and work remotely.
745.1 -> While American dollars have contributed to recent developments in Mexico.
749.45 -> There are some setbacks to the rapid expansion.
752.39 -> Supply chain issues are rising as demand beats out supply.
757.16 -> It's making development increase, certainly, but it's also making
759.72 -> development be less accessible to some of their most needed areas.
764.02 -> Like in California, for example, where we have really a shortage of housing,
768.2 -> which has actually led to the significant increases in prices in
771.2 -> California.
771.86 -> There's a similar bubble of lack of new construction in Mexico.
775.76 -> And when that construction is focused on unattainable incomes for Mexican
780.68 -> citizens, you're in some ways perpetuating the same bubble that we're
784.97 -> seeing in California for housing, but now in Mexico as well.
789.78 -> In order to combat the number of low-income Californians leaving the
793.71 -> state, affordable housing developments are beginning to make headway.
797.94 -> In September of 2021, California's governor signed a series of bills to
802.86 -> complement the California comeback plan, which invests $22 billion in
808.5 -> affordable housing and homelessness.
811.11 -> The wealthy are leaving California, too.
813.63 -> Some fear that mass departures by the state's billionaires and tech companies
818.4 -> could reduce local and state tax revenues.
821.52 -> Just 1% of California's top income earners are responsible for half of all
826.83 -> income tax revenue.
828.39 -> Those drops could have the potential to affect government services for years to
833.01 -> come. And in Baja, California, recent spikes in housing demand could cause the
838.32 -> country to run out of supply.
840.09 -> I've talked to a lot of agents down here and folks who have been in this industry
843.57 -> 20 years or more.
844.86 -> And a lot of them are all saying this is the first time in the last 20 years
848.76 -> that people are really significantly worried about our lack of inventory down
851.88 -> here. There's a lot more things being built and trying to come up with things
855.39 -> to sell to people.
856.5 -> As Mexico sees an influx of immigrants and increasing housing prices, there are
862.08 -> mixed opinions about the future of current U.S.-Mexico migration trends.
866.82 -> But at the same time, it's bringing, opening up new businesses.
870.06 -> It's driving money into Mexico.
871.71 -> It's you know, it's creating tourism and money for small businesses.
877.44 -> People are still going to be wanting coming down here more than ever.
879.75 -> And I don't see prices going down anytime soon.
882.27 -> A good amount of the people that actually go do this, try this, do return
888.96 -> home within 90 days.
890.49 -> Maybe your boss don't like this, maybe your car registration don't like this.
896.19 -> There is problems that exist for doing this.
899.73 -> So the turnover rate for this is is pretty, pretty quick.
904.53 -> For now, Californians are continuing to leave the state, and Mexico is welcoming
909.69 -> them with open arms.

Source: https://www.youtube.com/watch?v=bEh0Q94Gjss