This isn’t the first rush to transform San Francisco, but its booming impact is undeniable. More than $35 billion in venture capital has been raised by SF-based companies, and 83 AI firms leased office space in the past year alone. Global leaders OpenAI and Anthropic are headquartered here, anchoring the city as the epicenter of AI innovation.
The impact on real estate is undeniable: more homes sold over $20 million in 2024 than any other year in history. The Chronicle reported a shortage of mansions and move-in-ready homes are drawing multiple cash offers, some coming from AI employees pulling from tender offers, to purchase real estate.
We’re in an exciting phase fueled by strong capital inflows, rapid hiring, and rising rents. Still, not every property will receive AI’s “Midas touch,” and not every startup will survive.
In the next five to ten years, AI will likely mature into a foundational part of the Bay Area economy — less of a boom, and more of a backbone driving our already strong tech sector.
