An AI boom is sending San Francisco rents through the roof: ‘nowhere left for people to go’

San Francisco's booming artificial intelligence industry is driving up rent prices to unprecedented levels, leaving many residents struggling to find affordable housing. According to the city's rent board, eviction notices have increased by 44% compared to the previous year, as landlords take advantage of the situation to maximize profits.

The average rent for a one-bedroom in the city now stands at $4,400, which is over 25% higher than last year and nearly triple the national average. Even those with six-figure salaries are finding it difficult to secure housing. San Francisco has relatively strong tenant protections, including rent control on more than 160,000 units, but landlords are exploiting loopholes to bypass these safeguards.

The mayor has declared a "rent emergency" and proposed funding for eviction legal aid and caps on rent increases, but critics argue that these measures only address the symptoms of the problem, not its root cause. The AI boom has particularly affected neighborhoods like SoMa and Mission Bay, where many AI companies have offices.

Tenants in these areas are facing significant rent hikes, with some experiencing increases of up to 40%. The city's rent control laws, which aim to protect tenants from large rent increases, can sometimes incentivize landlords to evict long-term tenants and replace them with more profitable short-term renters. Some landlords are using legal loopholes, such as the Ellis Act, to evict tenants in order to convert rental units into luxury condos.

This practice has led to a significant increase in eviction cases, with roughly two-thirds of San Francisco residents renting their homes.