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San Francisco’s rents are now higher than they were before Covid hit. The median asking rent for a one-bedroom apartment reached $3,100 in September, a jump of roughly 12% over the year before. That’s also a steeper climb than what most major U.S. cities are seeing, where rents are either flat or declining, according to Apartment List data.

A major force behind this rebound is the return of tech workers, especially those in AI. Across the U.S. and Canada, the number of workers with artificial intelligence skills grew more than 50% in the past year, topping 517,000, according to CBRE. The majority of that growth is concentrated in the San Francisco Bay Area, New York City, Seattle, Toronto and Washington, D.C., with the San Francisco Bay Area being the number one tech talent market.

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According to the Silicon Valley Institute for Regional Studies, companies in San Francisco raised $34 billion in venture capital in 2024, up from $11.4 billion the year before. This funding surge is translating into real estate demand. So far in 2025, AI firms have leased close to 1 million square feet of office space in San Francisco, roughly one-fifth of all office leases signed this year, according to the Wall Street Journal.

More office space means more workers living in the city, which translates to higher housing demand and upward pressure on rents.

Renting in San Francisco is becoming more and more cutthroat as AI jobs boom collides with low supply. Since the pandemic, San Francisco hasn’t added much new housing, and the construction pipeline hasn’t fully recovered, according to the San Francisco Chronicle. This mismatch of high demand and constrained supply is perhaps the most straightforward recipe for rising rents.

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Even before the AI boom, San Francisco was infamous for having one of the highest rental prices in the United States. Here’s what you can do to lower costs if you’re thinking about renting in San Francisco.

Act quickly. The city’s apartment vacancy rate has fallen to a low of 3.5%, ranking second-tightest nationwide, according to Apartment List. Make sure you have your paperwork and finances in order so you can jump on a good listing as soon as it hits the market.

Broaden your search radius. You may be able to find more reasonable prices if you look at neighborhoods slightly outside the city center or less trendy areas.

Consider shared housing. If you don’t mind living with other people, consider splitting a larger unit with roommates so you can live in neighborhoods that might otherwise be out of budget.

Negotiate where you can. Some landlords may be willing to budge on lease length, move-in dates or smaller concessions like parking or utilities, even if the rent itself is firm.