San Francisco Leads the Cost of Living
The median sale price of real estate in San Francisco rose by over 1 million USD compared to the level recorded after the housing market collapse triggered by the global financial crisis, the Redfin report states.
The report emphasizes that the market’s resilience in the region is primarily supported by the technology sector, as well as the associated influx of capital and AI‑related investments.
For comparison, in March 2012 the median sale price of an apartment in the San Francisco Bay Area fell to 625 k USD, the lowest level since the crisis.
In the same month of the current year it rose to 1,7 million USD, marking for the first time a difference exceeding one million dollars.
“Since then prices have continued to rise, reaching a level of 1,725 million USD in June 2026, which is about 1.01 million USD more than the June 2012 median of 718 k USD,” we read.
“Nevertheless, real estate in San Francisco is more expensive than anywhere else in the United States,” the report added.
The median real‑estate price in San Francisco increased by 140% since hitting its lowest point after the market collapse, compared to a 128% rise nationwide.
During the same period New York recorded a result of 122%.
However, most of the apartment price increase occurred before the pandemic and the AI boom, as evidenced by a median sale price of 1.5 million USD in 2019.
“The recent influx of well‑paid AI jobs has, however, caused an even larger price surge. In June prices in San Francisco rose by 9,2% year‑over‑year due to a sharp increase in demand and a drop in supply,” the report said.
“Home sales rose by 23% year‑over‑year, and the number of new listings fell by 16%,” it added.
Read also: Double‑digit real‑estate price growth. Apartments there are rising more than five times faster than nationwide
Source: Redfin.
Also read: Harsh real‑estate market data. Apartment sales suddenly fell by almost 20%
See also: Real‑estate market burst. “2026 looks like a good year to buy an apartment”
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Wealthy buyers in the real‑estate market, as Redfin notes, are resilient to high mortgage rates and similar factors that limit the purchasing power of the rest of the interested group.
Read also: Harsh real‑estate market data. Luxury apartments are disappearing from the market, no one else wants them?
Importantly, rising apartment prices bring both benefits and challenges to the local community.
While apartment owners profit from the increase in property values, some residents are pushed out of the market, unable to compete with the high wages offered by AI firms.
“Rising prices have also deepened housing affordability problems,” we read.
“Buyers receiving lucrative compensation in the form of stock and high salaries can often manage high property prices and mortgage rates, but many households not tied to the tech sector do not have that possibility,” the report added.
Redfin stresses that wages in San Francisco rose by 90% since 2012, while real‑estate prices increased by 140%.
“As a result, the housing market increasingly caters to wealthy buyers, depriving many middle‑income individuals of the ability to purchase a home. To afford a typical home in San Francisco, buyers would need to earn almost 300 k USD annually,” the report emphasized.
Real‑estate prices in the luxury districts of the San Francisco Bay region rose by 13,4% over two years since the launch of ChatGPT.
Experts estimate that in the case of the IPOs of OpenAI and Anthropic, employees hired by the companies could “hypothetically buy almost one third of all homes in San Francisco with the combined proceeds from the first public offering.”
The number of luxury home sales in San Francisco in May rose by 46% year‑over‑year, recording the largest increase nationwide.
Read also: The real‑estate market is booming. Those looking for a home “should know this” – experts say
See also: Real estate no longer drops. 40 k sales agreements were canceled in the month, apartments linger on the market for 60 days
Source: Redfin.
