The artificial intelligence boom has pushed the median sales price of homes in San Francisco to a record $2.15 million.
Real estate brokerage Compass said recent deals showed parts of tech capital had come out of their doom loop thanks to the surge in AI investment and hiring.
“The economic changes created by the war in Iran – such as rising interest rates and financial market volatility – have not affected the extremely intense market dynamics in San Francisco, which are fueled by the new jobs and wealth generated by the AI startup boom,” Compass chief market analyst Patrick Carlisle said in a statement.
The median home price in March, up 18% from last year, surpassed the April 2022 peak by $2 million, according to Compass. Median condo sales prices jumped to $1.36 million, up 27% from the previous year and slightly below the peak of $1.37 million reached in April 2022.
The new data shows how the rise of AI is making life more expensive and competitive in San Francisco, home to major tech companies such as OpenAI, Anthropic, Salesforce and Uber.
Companies are requiring employees to return to the office for part of the week as they rent more space throughout the city. AI billboards line the streets and highways of San Francisco.
As tech giants lay off workers, they’re also investing heavily in technologies that could disrupt the way people work and socialize. AI-based tools can generate text, images, code, and facilitate other tasks such as planning and research.
In California, sales of luxury homes and condos also reached new highs in March. At least 22 homes were sold for more than $5 million and 24 condos were sold for more than $3 million, surpassing 2021 highs.
As tech executives grow their wealth, affordability has become a hot-button issue in California, where unions are pushing for a one-time 5% tax on the state’s billionaires to fund health care and other essential services.
Some billionaires, like Larry Page, co-founder of Google, and Mark Zuckerberg, co-founder and chief executive of Meta, have snapped up luxury real estate in Florida and other states. In December 2025, Larry Ellison, co-founder and chief technology officer of Oracle, quietly sold his San Francisco home in Pacific Heights for approximately $45 million.
Buying a home in San Francisco is also becoming more competitive. The number of homes listed for sale fell 28% compared to March of last year.
“The mismatch between supply and demand continues to put pressure on the market as buyers compete for scarce listings,” Carlisle said.
Amid increased competition, buyers also paid more than the listed price. On average, homes sold for 23% above asking price. Homes were on the market for an average of 20 days, according to Compass.