Amid AI boom, San Francisco rents are up. So are evictions.

"On Sept. 2, Mayor Daniel Lurie retweeted a news story detailing a "surge" of AI leases in San Francisco. "San Francisco's office market is bouncing back," he wrote. "New companies are arriving, and homegrown innovators like OpenAI are expanding." "The future," he continued, "is being built right here in San Francisco. But that future does not look great for tenants. With San Francisco rent increases over the last 12 months the fastest of any major city in the country, eviction notices are also spiking."

"Companies like OpenAI are shelling out millions or tens of millions to hire a single engineer - a month ago, employees there received bonuses alone that could be in the " millions." Ordinary tenants are being crowded out. Median rents reached $3,069 for a one-bedroom apartment in August and $3,637 for a two-bedroom, according to data from the rental site Apartment List."

"Overall, rent prices are up 11.5 percent over the last year and edging towards pre-pandemic levels. Though tenants received a brief reprieve during the pandemic, their rents were never cheap. Even when prices were at their lowest in January 2021, rent for a one-bedroom apartment in San Francisco was still the sixth most expensive nationally, according to data from Apartment List."

"Eviction notices, meanwhile, are at their highest rate since 2018 and have almost doubled in the last year alone. The sheriff's department has received an average of 84 eviction execution orders a month this year, which are issued by the Superior Court when a tenant loses an eviction case, compared to 88 a month in 2024 and 76 a month in 2023."

San Francisco's office market is experiencing a surge of AI leases, with new companies arriving and firms like OpenAI expanding. High tech firms are paying millions to hire and retain engineers, contributing to increased housing demand that crowds out ordinary renters. Median rents were $3,069 for one-bedrooms and $3,637 for two-bedrooms in August, with overall prices up 11.5 percent year-over-year and approaching pre-pandemic levels. Rents remained among the nation's highest even at their pandemic low. Eviction notices are at their highest rate since 2018 and have nearly doubled in the past year, with the sheriff's office receiving an average of 84 eviction execution orders monthly.

Read at Mission Local