San Francisco housing market spikes as AI boom fuels $1 million‑plus over‑asking sales

Data from Compass shows more than 140 San Francisco homes sold for at least US$1 million above the asking price in the first half of 2026, with 44 such sales in June alone – a 1,650 % rise from the same period a year earlier. The surge coincides with a 17 % year‑on‑year increase in median single‑family home prices to US$2.2 million, a 45 % drop in inventory and an average selling time of just 18 days, the fastest pace in five years.

Economists link the unprecedented bidding wars to the rapid expansion of the artificial‑intelligence sector in the Bay Area. OpenAI and Anthropic, both headquartered in San Francisco, are preparing high‑valued IPOs, attracting a wave of highly paid AI engineers and prompting some buyers to offer company stock instead of cash. The Czech press notes similar dynamics, citing a three‑million‑dollar listing for a Duboce Triangle condo and reporting that in October AI employees collectively sold roughly US$6.6 billion of company shares, averaging about US$11 million per participant. Analysts warn that the influx of affluent AI workers is inflating prices, especially in the premium segment, and worsening affordability for lower‑ and middle‑income residents.