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Driven by the AI boom, the median home price in San Francisco soars to record highs
ME News Report, April 7 (UTC+8), data from brokerage firm Compass Inc. shows that the median home price in San Francisco soared to a record $2.15 million in March, up 18% from the same period last year, mainly driven by the influx of wealth created by artificial intelligence startups. Similarly, apartment prices in San Francisco also rose significantly, up 27% to $1.36 million, just below the April 2022 peak of $1.38M.
Compass Chief Market Analyst Patrick Carlisle stated in the report: “The economic changes brought by the Iran war—such as rising interest rates and financial market volatility—have not affected San Francisco’s extremely hot market dynamics, which are driven by new job opportunities and wealth generated by the thriving AI startup scene.”
AI companies like OpenAI and Anthropic have sparked a new gold rush in San Francisco, with employees investing their wealth into this landlocked city with little new housing development. Compass reports that at least 22 homes sold for over $5 million in March, setting a monthly record. Additionally, 24 apartment sales exceeded $3 million—also a monthly record. (Source: Bloomberg)