AI boom catapults San Francisco median home price | Real Estate news

The artificial intelligence boom has pushed up San Francisco’s median home gross sales price to a document $2.15 million.

Real property brokerage firm Compass said that current transactions confirmed that some components of the tech capital have emerged from its doom loop on the back of the surge in AI investment and hiring.

“The economic changes created by the Iran war — such as rising interest rates and financial market volatility — have not affected the extremely heated market dynamics in San Francisco, which are being fueled by the new employment and wealth generated by the AI startup boom,” Compass Chief Market Analyst Patrick Carlisle said in a assertion.

The March median home price, up 18% from last yr, surpassed the April 2022 peak of $2 million, according to Compass. Median apartment sale costs jumped to $1.36 million, up 27% from a yr earlier, and barely below the $1.37 million peak in April 2022.

The new data show how the rise of AI is making it more costly and aggressive to live in San Francisco, home to major tech corporations such as OpenAI, Anthropic, Salesforce and Uber.

Companies are requiring employees to return to the workplace for half of the week as they lease more space throughout town. Billboards about AI line San Francisco streets and highways.

While tech giants have been shedding employees, they’ve also been investing closely in technology that might disrupt how people work and socialize. AI-powered instruments can generate textual content, photos, code and help with other duties such as planning and research.

In California, luxurious home and apartment gross sales also reached new highs in March. At least 22 homes have been offered for more than $5 million and 24 condos have been offered for more than $3 million, exceeding the peaks in 2021.

As tech executives grow their wealth, affordability has been a hot-button issue in California, where unions are pushing for a one-time 5% tax on the state’s billionaires to fund healthcare and other important providers.

Some billionaires, such as Google co-founder Larry Page and Meta co-founder and chief government Mark Zuckerberg, have been snapping up luxurious real estate in Florida and other states. In December 2025, Oracle co-founder and Chief Technology Officer Larry Ellison quietly offered his San Francisco home in Pacific Heights for roughly $45 million.

Buying a home in San Francisco also is changing into more aggressive. The quantity of houses listed for sale dropped by 28% in contrast with March of last yr.

“The disconnect between demand and supply continues to pressurize the market as buyers compete for scarce listings,” Carlisle said.

Amid more competitors, homebuyers also paid more than the itemizing price. On average, houses have been promoting for 23% above the asking price. Houses have been on the market for an average of 20 days, according to Compass.