The factitious intelligence growth has pushed up San Francisco’s median house gross sales value to a file $2.15 million.
Actual property brokerage agency Compass stated that latest transactions confirmed that some elements of the tech capital have emerged from its doom loop on the again of the surge in AI funding and hiring.
“The financial modifications created by the Iran struggle — corresponding to rising rates of interest and monetary market volatility — haven’t affected the extraordinarily heated market dynamics in San Francisco, that are being fueled by the brand new employment and wealth generated by the AI startup growth,” Compass Chief Market Analyst Patrick Carlisle stated in an announcement.
The March median house value, up 18% from final yr, surpassed the April 2022 peak of $2 million, in keeping with Compass. Median apartment sale costs jumped to $1.36 million, up 27% from a yr earlier, and barely beneath the $1.37 million peak in April 2022.
The brand new knowledge present how the rise of AI is making it dearer and aggressive to stay in San Francisco, house to main tech firms corresponding to OpenAI, Anthropic, Salesforce and Uber.
Firms are requiring staff to return to the workplace for a part of the week as they lease more room all through town. Billboards about AI line San Francisco streets and highways.
Whereas tech giants have been shedding staff, they’ve additionally been investing closely in expertise that might disrupt how folks work and socialize. AI-powered instruments can generate textual content, photographs, code and assist with different duties corresponding to planning and analysis.
In California, luxurious house and apartment gross sales additionally reached new highs in March. At the very least 22 homes had been bought for greater than $5 million and 24 condos had been bought for greater than $3 million, exceeding the peaks in 2021.
As tech executives develop their wealth, affordability has been a hot-button concern in California, the place unions are pushing for a one-time 5% tax on the state’s billionaires to fund healthcare and different important companies.
Some billionaires, corresponding to Google co-founder Larry Web page and Meta co-founder and chief government Mark Zuckerberg, have been snapping up luxurious actual property in Florida and different states. In December 2025, Oracle co-founder and Chief Expertise Officer Larry Ellison quietly bought his San Francisco house in Pacific Heights for roughly $45 million.
Shopping for a home in San Francisco is also turning into extra aggressive. The variety of houses listed on the market dropped by 28% in contrast with March of final yr.
“The disconnect between demand and provide continues to pressurize the market as patrons compete for scarce listings,” Carlisle stated.
Amid extra competitors, homebuyers additionally paid greater than the itemizing value. On common, houses had been promoting for 23% above the asking value. Homes had been in the marketplace for a mean of 20 days, in keeping with Compass.
