"Prices and rents across the San Francisco Bay Area are climbing thanks to an injection of AI cash. "It's going to rain money in SF," one real estate agent said of OpenAI's employee stock sale. The AI boom has lit a fuse under San Francisco's housing market, with prices and rents inflamed by a tech workforce increasingly returning to the office, and as the AI talent wars push salaries to dizzying highs."
"The salary needed to afford a home in the San Jose metro area - which encompasses Silicon Valley and the headquarters for Meta, Google, and Nvidia - crossed the $400,000 threshold for the first time in April 2024, said Daryl Fairweather, Redfin's chief economist - "an inconceivable amount of money unless you work in AI, and those salaries are probably more common.""
AI hiring, private equity sales, and big compensation packages are inflating Bay Area housing demand and prices. Returning-to-office trends are bringing tech workers back to San Francisco, increasing in-person housing demand. AI-focused companies such as OpenAI, Anthropic, and Nvidia are drawing talent and driving salary growth. The San Jose metro now requires roughly $400,000 in salary to afford a home, reflecting unprecedented affordability pressure outside AI employment. Private stock tenders have allowed employees to access equity and purchase homes. Luxury San Francisco housing is setting new records as buyers with AI-linked wealth enter the market.
Read at Business Insider
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