According to the report, the median San Francisco home price has reached about $1.7 million, while bidding wars have become increasingly common, with some properties receiving offers more than $1 million above their asking prices.
The report said the influx of AI workers has created a new class of wealthy buyers with valuable stock options, intensifying competition with employees and investors connected to established technology companies such as Google, Apple and Meta.
About one-third of Bay Area home purchases between April and June were made entirely with cash, highlighting the financial strength of some buyers.
Population growth has since resumed as major AI companies require employees to work in person for at least part of the week.
The AI-driven demand is also pushing up rents. According to the report, one-bedroom rents have risen nearly 23 percent and two-bedroom rents nearly 26 percent over the past year, with the average two-bedroom rental now exceeding prices in New York City.
With available listings down about 30 percent, renters are facing fewer choices and growing competition for housing close to major AI offices and public transport.
Related Tweet:
The AI boom has pushed the bruising race for housing in San Francisco into overdrive, with a lack of supply colliding with sky-high salaries. https://t.co/FutHAbtBqf pic.twitter.com/jV20GAxUcm
— The Wall Street Journal (@WSJ) August 16, 2026
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