AI Boom Prices Out San Francisco Homebuyers

San Francisco's housing market has become a battlefield where traditional homebuyers are getting edged out by an AI-driven economic surge. Alexandria Belton, a 33-year-old prospective buyer, finds herself caught in this turmoil, struggling to secure a reasonable deal in a city where prices have skyrocketed beyond comprehension.

The AI Boom's Market Impact

Belton started her home search in October 2025 with a budget that seemed generous by any standard, $1.2 million. But in the wake of the AI boom, even that hefty sum couldn't secure her a property. She's since bumped her budget to $1.5 million, and still, homes sell for far over asking prices. It's not just condos. single-family homes with any potential for investment are also seeing inflated prices.

What's fueling this madness? AI companies, flush with investment and newly minted millionaires, are flooding the market. Properties that look like they belong in a teardown contest are fetching prices over $1 million. The intersection of tech wealth and real estate has created a market most can't compete in. If the AI can hold a wallet, who writes the risk model?

Searching Beyond the City Limits

Belton's search led her to Marin, a charming area 15 minutes north of San Francisco. Initially, she hoped Marin would offer a reprieve from the frantic bidding wars of the city. However, she quickly learned that the frenzy had followed her there. A house listed at $1.1 million in Marin closed at $1.9 million, an astonishing gap that suggests even this 'suburban' paradise isn't immune to San Francisco's pressures.

Her experience begs the question: How sustainable is this market frenzy? Is it just another bubble waiting to burst? Decentralized compute sounds great until you benchmark the latency, and the same can be said for investing in a market where prices are only climbing higher without reason.

Holding the Line

Despite the discouraging market, Belton is holding firm on her budget. She's put in multiple bids, but refuses to make an irresponsible financial decision just to claim a piece of property. Her and her fiancé, both financially stable, aren't willing to become 'house poor' for the sake of a fixer-upper.

The mental exhaustion of this process is undeniable. Belton feels like she's missed the boat, but she's not surrendering yet. Her story is a cautionary tale for anyone hoping to navigate the choppy waters of San Francisco's real estate landscape. As for the long-term outlook? Show me the inference costs. Then we'll talk.