San Francisco's housing market has gone into overdrive, with the median house price soaring to a record £1.4 million in May 2026, as the city's artificial intelligence sector fuels a wealth boom. The AI industry's massive salaries and generous stock options are creating a wave of multi-millionaires who are snapping up properties in the city.
Data from Redfin shows that median house prices in San Francisco jumped by 19% year-on-year in March, followed by further increases of 14.5% in April and 14.1% in May. This contrasts sharply with the broader US market, where prices rose by only 1.4% in March and 2% in April and May.
The influx of wealth from the AI industry is undeniable, particularly for top personnel who are being offered high salaries, substantial signing bonuses, and generous stock options. For instance, over 600 current and former OpenAI employees reportedly sold shares worth a combined $6.6 billion last October, averaging $11 million per individual. Similarly, Anthropic workers are said to have sold shares totalling around $6 billion.
The luxury segments of the market are being driven by AI industry wealth, with affluent areas like Duboce Triangle seeing significant demand. One opulent three-bedroom apartment recently listed for almost £2.3 million attracted considerable attention, with the seller even open to accepting shares in OpenAI or Anthropic as an alternative to cash.
While some economists suggest it's still early days for the AI boom and potential opposing forces could temper the market, for now the prevailing sentiment among real estate professionals is one of optimism. However, experts like Enrico Moretti from the University of California, Berkeley warn that the demand for highly specialised workers might lessen as the industry matures, potentially impacting wage growth and property market pressures.
San Francisco's population and employment levels are still below pre-pandemic figures, despite a recent rise, which may temper some concerns about a bubble. Nonetheless, the current boom marks a significant reversal from the downturn experienced during the Covid-19 pandemic when house prices softened.