SF Dream Fades: High Earners Priced Out by AI Boom

San Francisco's notorious affordability crisis has reached a new peak, impacting even high-earning tech professionals. Katrine Razniak, a recruiter, and her partner Adam Woodbury, a software engineer, found their combined six-figure salaries insufficient to secure even a one-bedroom apartment under $5,000 per month, despite looking at approximately 30 properties over three months. This situation is exacerbated by the emergence of an AI elite from companies like OpenAI and Anthropic, whose potential for wealth creation, including the possibility of over 20 new billionaires, is driving up costs.

The median home price in San Francisco surpassed $1.7 million in April, while the average apartment rent reached $3,827 per month, making it the nation's most expensive. Housing demand is intense, with vacancy rates in desirable neighborhoods dropping significantly. Utilities, transportation, and groceries also contribute to a cost of living that is over 65% higher than the national average. Even those earning close to $200,000 annually report increased financial vigilance.

Some individuals are adapting by moving to less expensive areas like Lake Tahoe or sharing housing in San Francisco. However, others, like Razniak and Woodbury, are contemplating moves to cities like Seattle to achieve goals such as homeownership. While the city's mayor's administration is exploring solutions for child care and housing, the immediate future for many mid-to-high-income earners in San Francisco appears increasingly challenging as the AI boom reshapes the economic landscape.