The figure is a huge jump from January through July of last year, in which only eight homes sold for more than $1m, according to Compass data. Just six homes sold above that amount in the first six months of 2024.<\/p>\n
The skyrocketing demand for homes in this price range is \u201cabsolutely BANANAS\u201d, according<\/a> to Mike Simonsen, Compass\u2019s chief economist. Simonsen has previously explained<\/a> that the widespread overbidding was \u201cof course related to the AI boom. It\u2019s migration and hiring, as well as preparing for mega IPOs.\u201d<\/p>\n OpenAI<\/a> and Anthropic<\/a>, both headquartered in San Francisco, have filed to go public on the US stock market at valuations approaching $1tn. Their debuts promise to mint a new class of multimillionaires in San Francisco, which is already home to the highest concentration of billionaires per capita in the world.<\/p>\n San Francisco\u2019s single-family home prices have risen about 17% year over year, while inventory has plummeted roughly 45%, according to Compass\u2019s market intelligence report<\/a> published last month. The single-family median home price has increased from $1.7m to $2.2m, and houses are getting snapped up at an average of 18 days on the market, the fastest pace in five years.<\/p>\n The sky-high sales in San Francisco\u2019s housing market marks a shift from a few years ago when departures as well as concerns about crime and homelessness contributed to a slump<\/a>.<\/p>\n Compass\u2019s report noted that in San Francisco, \u201cAI and tech-driven demand has created aggressive bidding wars on the scarce inventory\u201d and that \u201cskyrocketing rents are back in the norm\u201d. Simonsen explained that the resurgent demand is so far concentrated \u201cto a very small section in the city, and luxury markets in Peninsula and Marin\u201d. The report describes a \u201chousing market increasingly segmented by income tier and proximity to AI-driven employment centers\u201d.<\/p>\n San Francisco stands out as having the highest median home price in the country, according to a May 2026 analysis from real estate firm Redfin. Simonsen also said it was notable that other tech hubs across the country have not seen a similar trend of overbidding.<\/p>\n skip past newsletter promotion<\/a><\/p>\n Sign up to TechScape<\/p>\n A weekly dive in to how technology is shaping our lives<\/p>\n after newsletter promotion<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/06\/1782850452_383_500.jpg\")
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