San Francisco real estate gets super hot as AI boom creates new shortage
San Francisco’s housing market is going through a huge turnaround. It has gone from being a city synonymous with pandemic-era urban decline to the hottest housing market in the country.
The AI boom is responsible for this upturn in events. Rich employees at AI companies are pricing out move-in-ready homes to the point that all-cash offers of $25 million are seen as too low in the housing market right now.
From empty office spaces to 50-bidder open houses
San Francisco was a completely different place three years ago. The city lost over 60,000 residents from 2020 to 2022 as remote work surged due to the pandemic. The median sale price of a home was a lowly $1.28 million as of January 2023, a drop from its $1.68 million high the previous spring.
That slump has come to an end. The median home price has surged 25% over the past twelve months, and Paul Kitchen, a real estate agent, tells how certain listings have drawn up to 50 offers.
“You have to laugh just because it is so ridiculous and so beyond the pale,” Kitchen said, describing scenarios where top-end buyers offer $25 million in cash but still end up without a home.
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