San Francisco’s housing market is being reshaped by the rapid expansion of artificial intelligence companies after the pandemic drove more than 60,000 residents from the city between 2020 and 2022. OpenAI and Anthropic have each leased roughly 1 million square feet of office space over the past two years, making them the city’s second- and fourth-largest office tenants, respectively. San Francisco accounts for more than 40% of U.S. AI-related job openings, according to Comprehensive.io, while average asking rents in the metropolitan area have risen by more than $1,000 in a year to $4,600 a month. The median home price reached roughly $1.72 million in June, single-family prices rose 17% year over year, and vacancy fell to about 3.7%. AI employees and investors are intensifying competition with offers more than $1 million above asking and, in some cases, upfront rent payments. Redfin estimates current and former OpenAI employees could hold about $135 billion in post-tax equity at the company’s expected valuation, with Anthropic employees holding another $63 billion, although an earlier Redfin estimate put their potential purchasing power at nearly 29% of metropolitan-area homes if IPO proceeds were invested in property. The boom is lifting asset values while pricing out many conventional technology workers and other residents, prompting San Francisco to expand zoning, reform permitting and explore office-to-housing conversions.