San Francisco's AI wealth boom pricing out even six-figure tech workers

What happened

Tech workers earning $180,000–$185,000 annually are struggling to find apartments under $5,000 a month in San Francisco. Average rent in the city has reached $3,827, and median home prices hit $1.7 million（約2.7億円）. Potential IPOs of OpenAI and Anthropic—each valued at close to a trillion dollars—threaten to drive prices even higher by concentrating wealth among a small group of employees.

Why it matters

The AI boom is creating extreme wealth inequality in San Francisco. A venture capitalist recently described a new AI elite of roughly 10,000 people worth more than $20 million（約32億円） each, with OpenAI alone reportedly creating 75 multimillionaires last fall. This concentration of capital is likely to intensify housing scarcity and affordability pressure for even well-compensated workers, potentially forcing talented engineers to relocate.

What to watch

Vacancy rates in desirable neighborhoods have collapsed—Marina District and Pacific Heights saw rates drop from 13 percent in 2020 to about 3 percent. The scale of wealth creation from the pending IPOs will likely determine whether housing costs continue to climb beyond current levels.