San Francisco Rents Surge Again as AI Boom Floods the City With Tech Talent

San Francisco’s rental market is heating up again after years of decline. The return of workers in artificial intelligence has pushed rents sharply higher across prime neighborhoods.

During the pandemic, rents dropped when tech jobs went remote. But AI startups are hiring fast and want employees on-site. This has brought thousands of well-paid workers back to the city.

Demand is rising fastest in areas close to AI offices and co-working hubs. Landlords are raising prices, and bidding wars have returned. Some renters report losing apartments within hours of viewing because competition is fierce.

At the same time, supply remains tight. Many homeowners left during the pandemic or converted units to short-term rentals. New construction has also slowed due to costs and regulation.

Housing advocates worry that this rebound will again push out lower-income residents. They argue the AI boom benefits only a small group while widening inequality. City officials are under pressure to speed up permits and protect affordable housing.

Even so, real estate agents say the rebound will continue as AI firms expand and more investors move back in. For many in San Francisco, the AI surge has revived not just the tech job market — but also the rent crisis.