AI boom catapults San Francisco median home price above $2 million

The artificial quality roar has driven up San Francisco’s median location income terms to a grounds $2.15 million.

Real property brokerage steadfast Compass said that caller transactions showed that immoderate parts of the tech superior person emerged from its doom loop connected the backmost of the surge successful AI concern and hiring.

“The economical changes created by the Iran warfare — specified arsenic rising involvement rates and fiscal marketplace volatility — person not affected the highly heated marketplace dynamics successful San Francisco, which are being fueled by the caller employment and wealthiness generated by the AI startup boom,” Compass Chief Market Analyst Patrick Carlisle said successful a statement.

The March median location price, up 18% from past year, surpassed the April 2022 highest of $2 million, according to Compass. Median condo merchantability prices jumped to $1.36 million, up 27% from a twelvemonth earlier, and somewhat beneath the $1.37 cardinal highest successful April 2022.

The caller information amusement however the emergence of AI is making it much costly and competitory to unrecorded successful San Francisco, location to large tech companies specified arsenic OpenAI, Anthropic, Salesforce and Uber.

Companies are requiring workers to instrumentality to the bureau for portion of the week arsenic they lease much abstraction passim the city. Billboards astir AI enactment San Francisco streets and highways.

While tech giants person been laying disconnected workers, they’ve besides been investing heavy successful exertion that could disrupt however radical enactment and socialize. AI-powered tools tin make text, images, codification and assistance with different tasks specified arsenic readying and research.

In California, luxury location and condo income besides reached caller highs successful March. At slightest 22 houses were sold for much than $5 cardinal and 24 condos were sold for much than $3 million, exceeding the peaks successful 2021.

As tech executives turn their wealth, affordability has been a hot-button contented successful California, wherever unions are pushing for a one-time 5% taxation connected the state’s billionaires to money healthcare and different indispensable services.

Some billionaires, specified arsenic Google co-founder Larry Page and Meta co-founder and main enforcement Mark Zuckerberg, person been snapping up luxury existent property successful Florida and different states. In December 2025, Oracle co-founder and Chief Technology Officer Larry Ellison softly sold his San Francisco location successful Pacific Heights for astir $45 million.

Buying a location successful San Francisco besides is becoming much competitive. The fig of homes listed for merchantability dropped by 28% compared with March of past year.

“The disconnect betwixt request and proviso continues to pressurize the marketplace arsenic buyers vie for scarce listings,” Carlisle said.

Amid much competition, homebuyers besides paid much than the listing price. On average, homes were selling for 23% supra the asking price. Houses were connected the marketplace for an mean of 20 days, according to Compass.