San Francisco’s luxury housing market is experiencing a dramatic revival, with artificial intelligence at the center of the city’s real estate resurgence. According to Sotheby’s International Realty’s 2025 Mid-Year Luxury Outlook report, more homes sold for over $20 million in San Francisco than in any previous year on record.
The Bay Area’s high-end real estate had cooled following the pandemic, but it’s now seeing renewed demand from tech founders, engineers, and investors who are relocating or reinvesting in the region.
“The thought is that the A.I. space is going to be the next major source of wealth creation in the global economy,” said Bradley Nelson, Sotheby’s Chief Marketing Officer. “San Francisco became a magnetic location really quickly because if an entrepreneur or a tech investor was saying, ‘OK, I want to make a bet in A.I.,’ they were deciding they needed to do it in San Francisco and in the Bay Area for access to the labor pool with that technical expertise.”
The city is home to OpenAI, the developer of ChatGPT, along with a host of other startups and research institutions focused on artificial intelligence. The tech boom has brought new energy (and a huge cash flow) into the housing market, most visibly on San Francisco’s Billionaire’s Row, where Laurene Powell Jobs reportedly purchased a home for $70 million.
Buyers aren’t just purchasing ultra-pricey homes, they’re committing to staying. Nelson noted that many new owners are investing in multimillion-dollar, multiyear custom renovations, signaling long-term plans to reside in the city. He also told Bloomberg that “the luxury real estate market in 2025 has just stepped out as the perennial safe haven,” and credited San Francisco’s rebound in part to newly elected Mayor Daniel Lurie.
Other luxury markets are also booming. In New York City, homes priced at $10 million or more saw a 115% increase in sales, according to Sotheby’s. Deer Valley, Utah, is another rising star, where a state record of 15 homes have sold for over $15 million this year already.
Click here for more on Sotheby’s International Realty’s 2025 Mid-Year Luxury Outlook report.
