San Francisco's artificial intelligence boom has sent home prices soaring, with buyers routinely paying more than £1m above asking prices, according to a new analysis from real estate brokerage Compass. In the first half of 2026, over 140 homes sold for at least £1m above their list price, 44 of them in June alone. This marks a sharp increase from just eight such sales in the same period last year.
The surge is driven by rapid AI growth, with companies like OpenAI and Anthropic filing for public listings at valuations approaching £1tn. Their IPOs are expected to create a new wave of multimillionaires in a city already home to the highest concentration of billionaires per capita globally. Compass chief economist Mike Simonsen described the trend as “absolutely bananas”, attributing it to migration, hiring, and preparations for mega IPOs.
San Francisco's single-family home prices have risen about 17% year over year, while inventory has plummeted roughly 45%. The median home price has increased from £1.7m to £2.2m, and homes are selling in an average of 18 days, the fastest pace in five years. Compass noted that “AI and tech-driven demand has created aggressive bidding wars on the scarce inventory” and that “skyrocketing rents are back in the norm”.
The city now has the highest median home price in the US, according to Redfin. However, the boom is concentrated in luxury markets and areas near AI employment centres. Redfin chief economist Daryl Fairweather said the prosperity of AI appears “much more concentrated” this time, with not everyone participating in the buying spree.
