AI Talent Surge Drives Rent Spikes San Francisco, NYC, Toronto, Seattle

The surge in artificial intelligence (AI) talent across major North American cities is driving significant increases in housing demand and rents, particularly in tech and finance hubs like San Francisco, New York City, Seattle, Toronto, and Washington, D.C. The number of AI-skilled workers has grown by over 50% in the last year, with New York adding around 20,000 AI professionals and other cities experiencing growth rates exceeding 75%. High AI salaries enable these workers to afford rising rents — for example, AI professionals in Manhattan spend about 29% of their income on housing, while in San Francisco and Washington, D.C., the share is closer to 19% — but this affordability intensifies the housing squeeze for other residents. Unlike other tech sectors that embraced remote work, AI firms emphasize in-office presence, with San Francisco seeing one in four leased office square feet go to AI tenants, further revitalizing commercial real estate and driving venture capital investments. The return-to-office mandates and AI-driven economic activity have pushed median home prices in San Francisco and surrounding areas higher, with luxury real estate sales reaching record levels amid a cautious but lucrative market for high-earning AI professionals. This AI boom is reshaping urban housing markets by fueling both residential and commercial real estate demand, contributing to affordability challenges in already costly cities.