Key facts
- San Francisco's median house price hit a record $1.76 million in May 2026.
- The median house price in San Francisco rose 19% year-on-year in March.
- AI workers are reportedly considering using company stock as payment for properties.
- A three-bedroom apartment in Duboce Triangle sold for $3.2 million, $200,000 over asking.
- The AI boom is widely seen as the main driver of the city's soaring property market.
San Francisco's housing market is experiencing unprecedented price growth, largely driven by the wealth generated within the artificial intelligence sector. Properties are seeing intense interest, with some sellers even considering accepting shares in AI companies like OpenAI or Anthropic as payment. The median house price in the city has reached a record $1.76 million, a stark contrast to the national average.
Real estate experts attribute this surge to the substantial salaries and stock options being awarded to AI professionals. Recent reports indicate that hundreds of employees from OpenAI and Anthropic have cashed in billions of dollars worth of shares, providing them with significant capital. This influx of AI-related wealth has reversed the pandemic-induced downturn in San Francisco's property market.
While some economists suggest the AI boom is still in its early stages, others point to potential moderating factors such as layoffs at major tech firms and the eventual shift of wealth from employees to global investors upon company flotations. However, the immediate reality for many is a market characterized by bidding wars, rapid sales, and an increase in all-cash purchases, making it increasingly difficult for those outside the AI industry to afford housing.
The impact is visible in the lives of residents, with some AI-employed families able to purchase homes using stock windfalls, while others without such advantages are forced to move to more affordable suburban areas. The situation has led to feelings of displacement and resentment among those priced out of the city they once called home.