San Francisco’s housing market has reached new heights, driven by an artificial intelligence boom that has pushed median home sales price to $2.15 million — a new record representing an 18 percent increase from the previous year.
Based on Compass data, the March figure beat the previous peak of $2 million in April 2022, the Los Angeles Times reported. Median condo prices also rose 27 percent to $1.36 million, just shy of their 2022 high.
Compass Chief Market Analyst Patrick Carlisle noted that despite economic volatility stemming from the Iran war and rising interest rates, San Francisco’s market remains “extremely heated,” fueled by AI startup hiring and wealth creation. Major tech firms like OpenAI, Anthropic, Salesforce and Uber are expanding office space and requiring partial in-office attendance, boosting demand for nearby housing.
Even as tech firms lay off workers, they need AI expertise.
Luxury sales across California also surged in March, with 22 homes selling for more than $5 million and 24 condos for more than $3 million — exceeding 2021 peaks. Yet affordability remains a flashpoint, as unions advocate for a one-time 5 percent tax on billionaires to fund essential services.
Some tech leaders, including Larry Page and Mark Zuckerberg, are buying luxury homes in Florida and other states. Oracle’s Larry Ellison sold his Pacific Heights home for a record price of $45 million in December.
At the same time, inventory has tightened. Listings dropped 28 percent in March year-over-year, intensifying competition. Homes sold for an average of 23 percent above asking price and stayed on the market only 20 days.
“The disconnect between demand and supply continues to pressurize the market as buyers compete for scarce listings,” Carlisle told the Times.
The rise of AI has impacted on San Francisco’s streets, with AI billboards lining highways, as well as its neighborhood residential markets, where tech salaries and stock payouts are driving record-breaking prices and rapid turnover.
– Joel Russell
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