San Francisco rents surge 14% as AI boom drives housing rebound

San Francisco rents surged 14% year-over-year as the AI boom drives a housing rebound in the city, reversing the pandemic-era exodus that had pushed vacancy rates to historic highs. The recovery is concentrated in neighborhoods near AI company offices, particularly SoMa and Mission Bay. Anthropic, OpenAI, and numerous AI startups have expanded their San Francisco presence, bringing thousands of high-income workers into the rental market. The rent increase outpaces every other major US city and has reignited debates about housing affordability in the Bay Area.