San Francisco median home price reaches record $1.76 million

The median sale price for homes in San Francisco reached a record $1.76 million in May, according to data from Redfin. The figure is more than four times the national median of nearly $400,000. Prices rose 14.1 percent from a year earlier, following a 14.5 percent increase in April and a 19 percent jump in March.

Redfin chief economist Daryl Fairweather said the data and agent reports point to AI-related wealth as the main driver. The steepest gains have occurred in luxury zip codes since OpenAI released ChatGPT in late 2022. Similar price surges have not appeared in cities with less AI employment.

Market activity A three-bedroom apartment in the Duboce Triangle neighborhood listed for nearly $3 million and sold for $3.2 million. The seller offered to accept shares in OpenAI or Anthropic in place of cash. The listing agent said bidding wars are now common and some homes are selling millions above the asking price.

Anthropic employees were recently permitted to sell shares worth a total of $6 billion. Both OpenAI and Anthropic are scheduled to hold initial public offerings later this year or next year.

Resident outcomes Two families with school-age children recently bought single-family homes. One family, where a parent works at OpenAI, completed an all-cash purchase inside the city after selling company shares. The second family, without AI income, bought a home with a mortgage in a suburban Bay Area town and now faces a longer commute.

San Francisco real estate agent Matthew Goulden said the upward trend extends beyond luxury properties to single-family homes and one-bedroom units. Realtor Danielle Lazier noted that supply remains limited and that AI money can produce an outsized effect on prices.