AI Boom Drives San Francisco Cost of Living to New Highs
San Francisco’s median home price has hit $1.7 million with average rent at $3,827, pushing out professionals earning under $200,000 a year. One couple with a combined $365,000 income spent three months unable to find an apartment below $5,000 per month — the engineer ultimately relocated to Lake Tahoe while the recruiter settled for a $1,650 room.
The pressure is fueled by an estimated 10,000 people in Silicon Valley with fortunes exceeding $20 million, plus windfalls from secondary stock sales — 75 OpenAI employees averaged $30 million each last fall. Analysts warn that anticipated IPOs from OpenAI and Anthropic will push housing costs even higher.