By Juliette Fairley NEW YORK ( TheStreet) -- The U.S. State Department estimates that there are 1,036,300 American citizens living in Mexico, including those visiting for 6 months on a tourist visa. Developers in Cabo San Lucas and sister city San Jose del Cabo have responded by increasing new construction. Since 2004, there has been an estimated 20% increase in both developed and undeveloped resort properties in Cabo, where fractional ownership is a common luxury real estate sales term. It's been noted to attract celebs, too. Cabo, after all, is a scenic island city surrounded by the Pacific Ocean and the sea of Cortez at the southern tip of the Baja California peninsula in the Mexican state of Baja California Sur, which boasts the second highest rate of immigration from the U.S.