Living in Cabo & The 2026 Real Estate Market: What Buyers Need to Know

Another beautiful day in Cabo—and another honest conversation about what’s really happening on the ground. Sitting down with Mitch McDonald, we broke down the Cabo real estate market, lifestyle decisions, and where the real opportunities are right now.

If you’re thinking about buying, investing, or relocating, this is what actually matters.

---

The Cabo Market in 2026: Back to “Normal”… For Now

After a slow end to 2025, the first quarter of 2026 has picked up significantly. Deals are moving, agents are busy again, and the market feels… normal.

But here’s the reality:
Cabo has become a “bipolar market”—periods of strong activity followed by hesitation driven by global uncertainty.

Key takeaway:

• Momentum is back
• But buyers still have leverage
• And timing matters more than ever

---

1. 2-Bedroom vs 3-Bedroom Condos: The Supply Problem

This one is simple: 3-bedroom units win.

Why?

• Roughly 2 out of 3 condos are 2-bedrooms
• Only 1 out of 3 are 3-bedrooms
• 3-bedrooms typically:
  • Are corner units
  • Have better light
  • Offer larger terraces
  • Perform better in rentals and resale

Bottom line:
Supply drives value—and 3-bedrooms are simply harder to find.

---

2. Pre-Construction vs Move-In Ready: No Longer a Debate

Right now, move-in ready properties are dominating.

Why buyers are avoiding pre-construction:

• Delays (often years)
• Pricing that no longer feels discounted
• Construction timelines slipping
• Developer inflexibility on pricing

Meanwhile:

• Resale = immediate use
• Often better deals
• Less stress

Current reality:
Even agents are steering clients away from pre-construction unless there’s a very specific reason.

---

3. Gated Communities vs Downtown Cabo

This comes down to lifestyle vs convenience.

Gated Community Pros:

• Security (especially for families)
• Amenities (pools, gyms, common areas)
• Quiet environment
• Better long-term value

Downtown Pros:

• Walkability
• No car needed
• Restaurants, marina, nightlife
• Strong short-term rental demand

Reality:
You can always visit downtown—but you can’t escape it if you live there.

---

4. Investment vs Lifestyle: The Shift Is Real

A major trend shift:

Old mindset:
👉 “Maximize ROI”

New mindset:
👉 “Cover my costs and enjoy it”

Buyers now want:

• A place they love
• 8–12 weeks of personal use
• Rental income to offset expenses

Key insight:
If you love the property, renters will too.

---

5. Cabo vs San José del Cabo

Both are strong—but they attract different buyers.

Cabo San Lucas:

• More activity
• More demand
• Stronger rental market
• Larger buyer pool

San José del Cabo:

• More refined
• Higher-end communities
• Art Walk, restaurants, charm
• Higher price points in prime areas

Data doesn’t lie:
More buyers choose Cabo—but both markets are thriving.

---

6. Pacific Side vs Sea of Cortez

This is one of the biggest lifestyle decisions.

Pacific Side:

• Cooler temperatures (natural AC effect)
• Dramatic views
• Luxury developments

But: Not swimmable

Sea of Cortez:

• Swimmable beaches
• Paddleboarding, swimming
• Easier daily enjoyment

Reality:
Most buyers prioritize usability → Sea of Cortez wins

---

7. Rental Strategy: Short-Term vs Long-Term

There’s a growing shift here too.

Short-Term Rentals:

• Higher potential income
• More management
• More wear and tear

Long-Term Rentals:

• Stable income
• Lower headaches
• Strong demand from relocators

Emerging strategy:
Rent long-term → cover costs → use Airbnb elsewhere when visiting

---

8. Where Is the Opportunity Right Now?

This is the most important question.

👉 $500K – $1M range

Why?

• High inventory
• Less competition at the luxury level
• More negotiation power
• Many resales hitting the market

Translation:
This is where buyers are getting the best deals today.

---

9. Condos vs Homes: What Will Appreciate More?

Mitch didn’t hesitate:

👉 Homes

Why?

• Condo supply is exploding
• Developers are building vertical (more units = more inventory)
• Land + homes are limited

Important nuance:

• Condo views can get blocked
• Homes offer more long-term scarcity

---

10. HOA Fees: Cheap vs Value

Buyers often ask:

👉 “Should I avoid high HOA fees?”

The answer: No.

Higher HOA =

• Better amenities
• Better maintenance
• Stronger resale appeal

And compared to places like Florida or California…
👉 Cabo HOAs are still very reasonable.

---

11. Second Property Strategy

If you already own in Cabo:

👉 Look at East Cape or Todos Santos

Why?

• Lifestyle diversification
• More relaxed environment
• “Old Cabo” feel
• Growing demand

This is becoming a major trend.

---

12. Buyer’s Market or Seller’s Market?

Right now:

👉 Buyer’s Market

Why:

• Increased inventory
• More motivated sellers
• Deals on move-in ready properties

But here’s the catch:

Most people hesitate due to global uncertainty.

The smart buyers?
They’re taking advantage of that hesitation.

---

Final Thought: Data vs Emotion

At the end of the day, real estate in Cabo isn’t just numbers.

Yes:

• Supply and demand matter
• ROI matters
• Appreciation matters

But what actually drives decisions?

👉 Family
👉 Lifestyle
👉 Experience

As Mitch said—data helps justify the purchase.
But emotion is what actually makes it happen.

Fletcher Wheaton real estate in Cabo - fletcher@remexico.com

Mitch McDonald - mitch@caborealestate.com