Just a few years since the watershed moment of the public release of ChatGPT, the artificial intelligence (AI) tech boom is already fundamentally reshaping San Francisco real estate as we know it.
As a top SF Realtor who has worked in the city’s housing market since 2002, I’ve seen firsthand how tech companies, and now specifically AI tech companies, are changing the demand for where we live, work and play.
Here's how I see this shift unfolding and what it means for buyers, sellers, and investors in San Francisco real estate.
The rise of AI companies like OpenAI and Anthropic is rewriting the story for commercial real estate in San Francisco.
Still struggling from pandemic-era changes and the shift toward remote work, the commercial property sector in SF has been significantly buoyed by the burgeoning AI-tech industry. As of mid-2024, AI companies had already leased 1.7 million square feet of office space in San Francisco, and the tally continues to rise.
As you might imagine, these AI companies on tech’s cutting edge have specific needs for their commercial properties, such as:
So far in the AI boom, neighborhoods like Mission Bay, SoMa, and Hayes Valley (aka ‘Cerebral Valley’ for its concentration of AI companies) have been top destinations that cater to these needs. Our team has personally worked with San Francisco home buyers and sellers in these areas who have looked to capitalize on the boom in AI-related investment.
If you’re curious about these neighborhoods or others, check out our San Francisco Neighborhoods page for more info.
Beyond commercial investments, the AI boom is also bringing people back to San Francisco. After years of remote work and relocation, tech professionals are returning to the city, drawn by its one-of-a-kind mix of culture and career opportunities.
Recently, I helped a client who moved back for a leadership role at an AI company. Like many others, they were eager to find a home that balanced proximity to work with access to the city’s lifestyle.
This resurgence is breathing new life into neighborhoods like Hayes Valley, Dogpatch, and Mission Bay. Each offers something distinct:
If you’re considering making San Francisco your home—or your next investment—our resources for buyers can help you take the first step.
Danielle was recently featured in Business Insider, sharing her expertise on how AI professionals are changing the San Francisco real estate market. In many ways, these buyers approach real estate completely differently than previous tech booms.
As Danielle told Business Insider, today's AI buyers are "data-driven and decisive." Many of her clients actually model payments, taxes, and micro-market evaluations with large language models before they even tour properties. It's a new level of preparation using newly available tools.
The scale is also impressive. Salaries needed to afford Bay Area homes have crossed $400,000 for the first time, while San Francisco rents are climbing at twice the national pace. We're seeing record luxury real estate sales in San Francisco too, with more homes selling above $20 million last year than ever before.
As Danielle noted in the article, the single-family home market is "on fire" and condos are "perking up," though we still haven't reached a complete pre-COVID recovery.
What stands out most is how thoughtful these AI buyers often are. Despite commanding substantial salaries, they're being strategic rather than speculative. They've learned from past tech market cycles and are making careful, informed decisions about their investments.
This measured approach makes sense when you're working with clients who understand both opportunity and risk. As experienced SF realtors, we appreciate working with buyers who do their homework.
Read the full Business Insider article here. [soft paywall]
The intersection of AI and real estate has sparked some interesting investment trends. A few that stand out:
These trends are creating opportunities in the SF real estate market. Buying, selling, or both, understanding these shifts helps you to make informed decisions. Check out our resources for San Francisco home sellers for more.
With growth comes complexity. (If you’ve been around, you know this is nothing new in SF!)
For San Francisco real estate, the influx of AI companies has created new pressures:
But AI investment also brings growth opportunities:
SF real estate is complex, important, and deeply personal. As a top SF real estate agent since 2002, consistently ranked among the best Realtors in San Francisco each year, our team can help you identify opportunities that align with your goals.
San Francisco’s real estate market is unlike any other, and that’s especially true now as AI shapes and propels it into the second half of the 2020s. Partnering with an experienced San Francisco real estate agent means you have someone who understands the market and the unique needs of buyers, sellers, and investors during this tech-driven transformation.
We help our clients by:
If you’re looking for your dream home or your next investment property in San Francisco, we would love to help you make it happen successfully.
Once again, San Francisco is at the forefront of social and technological change. And there’s no better time to be part of it. If you’re ready to buy your first home in San Francisco, sell a property, or explore investment opportunities in the market, let’s connect. Reach out for an initial consultation to discuss your personal situation and see if we're a good fit.
Visit our About page to learn more about the team, or head straight to our contact page to start planning your next move today. We look forward to speaking with you.
