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n the 1990s, brokers reported clients buying out‑of‑state properties without ever seeing them, relying only on photos and early web pages. Even then, buyers, sellers, and agents were pushing the limits of technology—dial‑up modems delivering a 28.8 kbps connection that felt like a triumph. Today the frontier is artificial intelligence, reshaping every facet of real‑estate work and influencing San Francisco’s market health.
Eric Jacobs, president of Anywhere Integrated Services, notes that AI is already embedded in agents’ routines: virtual assistants handle routine tasks, mortgage and title processes accelerate, and AI‑driven listing tools streamline marketing. San Francisco, a cradle of AI firms, has seen its downtown and housing sectors rebound as tech companies relocate and pay premium wages.
Bloomberg headlines proclaim “AI Cash Ignites a Boom for Multimillion‑Dollar San Francisco Homes,” while Smart Cities Dive reports a quieter “home‑buying boom” following AI’s arrival. Paul Barbagelata, broker associate and president of BarbCo Group, says his team has witnessed a surge in AI‑connected buyers—software engineers and other industry professionals alike. “Sales tied to AI purchasers have probably outpaced any previous period,” he told The Voice.
Kevin Kropp, sales manager at Vanguard Properties, agrees that AI is propelling the market. He observes “large numbers of cash offers, non‑contingent bids, and rapid closings.” The influx of AI‑generated wealth forces traditional buyers to elevate their game, even as interest rates remain a background concern. Kropp notes a focus on single‑family homes: since June 1, nine properties sold above $2,100 per square foot, peaking at $2,743 citywide and $2,127 in Noe Valley. Yet condo sales are rebounding as buyers priced out of single‑family units, buoyed by a robust rental market that lifts investment property demand.
Barbagelata cautions against pigeonholing AI buyers. “We see mid‑20s buyers snapping up downtown condos for work proximity, and middle‑aged families buying on the west side to raise children.” The diversity underscores AI’s broad reach across demographics.
Jacobs urges professionals to separate AI hype from reality. “Change is accelerating, and early adoption carries risk. AI tools can inherit bias from their data; we must choose the right applications and monitor them closely to avoid pitfalls.” Buyers, sellers, and renters should likewise educate themselves about the gap between promise and practice.
San Francisco’s AI boom also fuels fraud. Kropp reports a rise in rental scams, with fake listings demanding upfront payments. He recently warned a caller about a condo scam, advising no money be sent. AI can help analyze disclosures, but the nuanced construction and market specifics of San Francisco require expert human insight from Realtors, inspectors, and other professionals.
Despite AI’s advances, the human element remains essential. Bots streamline tasks, but nuanced judgment and local knowledge are irreplaceable.
Key headlines and data points illustrate the broader context: a 80 % rise in monthly payments for starter homes since 2020; 500 recreational vehicles used as shelters in San Francisco; a proposed South Nashville development’s per‑unit cost jumping from $300,000 to $600,000 after NIMBY pushback; 96,000 land parcels in San Francisco subject to the Family Zoning Plan; an 8.2 % drop in residential listings last month; a median two‑bedroom rent of $4,880; and increased complaints at Parkmerced following a change in management. Developers remain cautious, recognizing significant challenges and the need for clear policy support before altering land pricing.
William Rosatti, senior advisor at Northmarq’s National Development Services, comments on a Texas law aimed at addressing a 300,000‑home shortage: “Developers aren’t bullish on this as a golden ticket. They understand the major hurdles and will only advise material changes if a city clearly welcomes the policy shift.”
