For the past few years, San Francisco has lived under a national media scrutiny.
Some people were rooting for a comeback. Others were waiting for proof of decline.
Then Super Bowl week arrived and visitors, media, and even skeptics saw something locals already knew: the city didn’t crumble. It was just resetting.
And lately, the feeling on the ground has noticeably shifted.
The Shift We’re Seeing
Over the last 6 months, the vibe around the city has changed dramatically. Foot traffic is up. Restaurants are busy again. Office space is filling up. Neighborhoods feel active.
And in the real estate world, buyer activity has returned.
We are once again seeing multiple offers on well-priced homes, especially in desirable neighborhoods and trophy properties. Open houses are busier. Serious buyers are re-entering the market. Homes that would have sat last year are now moving quickly.
Many people assume interest rates are the whole story.
They aren’t…
What’s Actually Driving the Market
The real story right now is capital.
San Francisco has quickly become the center of the next technological wave: artificial intelligence.
The chart above explains a lot of what we’re experiencing locally. In 2025, the Bay Area attracted more AI venture capital than the next ten cities combined.
That funding doesn’t stay inside venture firms. It turns into jobs with substantial compensation, stock options, and liquidity.
And eventually, it turns into home buyers.
Housing demand in San Francisco has historically followed technology cycles, from the dot-com era to the mobile app boom and now AI appears to be the next one.As I recently shared in an interview with Realtor.com “The biggest driver in our resurgent market right now is that there are so many buyers. There are simply more buyers than homes for sale.” – John Solaegui
What We’re Seeing On the Ground
Over the past few months, we’ve seen founders, and high-income workers from AI companies actively entering the market.
Some are renters finally deciding to plant roots in the city. Others are relocating from other markets. The common theme is confidence and convenience of being physically in San Francisco again.
The challenge is supply.
Inventory has remained low, despite growing demand. When demand rises and supply stays low, competition returns and that is exactly what we are starting to see.
What This Means
For Buyers
Preparation matters more than timing in markets like this.
Homes are moving quickly and desirable properties often receive multiple offers. Having financing ready, reviewing disclosures early, and being prepared to act decisively is becoming important again.
For Sellers
This type of market rewards strategy, not just listing.
Pricing correctly, creating strong early exposure, and managing offer timing can significantly impact the final sale price. The goal is to create competition while the property is fresh on the market.
The Bigger Picture
More than anything, what we’re seeing is renewed belief in the city itself.
San Francisco has always been tied to innovation cycles, the goldrush, railroads, finance, theinternet, and now AI. Each wave brings new people, new energy, and renewed demand for living here. This doesn’t feel like a short-term spike. It feels like the beginning of another chapter.
If you’d like to read the full article I was interviewed for, you can find it here: see here.
And if you’re simply curious how these changes may affect your own plans, whether you’re thinking 2 months or 2 years from now, feel free to reach out. Even understanding the timing can make a big difference.
