The Rich Somers Report

Inside Cabo’s Real Estate Boom: Luxury Living, Market Shifts, and What Buyers Need to Know | Blake Harrington E456

Jan 29, 2026
Blake Harrington, founder of Baja Real Estate and two-decade Cabo broker, breaks down Cabo’s luxury market and who is buying now. He covers price-tier dynamics, why high-end sales stay strong, seller financing and creative lending, short-term rental strategies, and lifestyle differences between Cabo San Lucas and San José del Cabo.
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INSIGHT

Bifurcated Market By Price Point

  • The Cabo market splits by price point with $5M+ remaining tight while sub-$2M faces saturation and longer days on market.
  • Post‑COVID condo development and Airbnb growth created excess supply below $2M, softening demand there.
INSIGHT

Price Inflation Hurt Midrange Demand

  • Cabo's lower-tier pricing felt inflated after rapid rises, reducing perceived value for $1M buyers.
  • Simultaneous Airbnb saturation and new condo supply depressed rental incomes at those price points.
ADVICE

Buy Under $2M For Leverage

  • If you're hunting in Cabo, target properties under $2M now because buyers have negotiating leverage and market times are extended.
  • Expect more transition activity and plan for longer marketing and closing timelines.
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