Bay Area Housing Demand Surges as Tech and AI Bring Workers Back to the Office
I was recently interviewed by my colleague and close friend, Carrie Archer Howell in Las Vegas, and she asked me: “Is everyone leaving California?” My answer? Not exactly. 👀 The pandemic created a huge migration out of California, but the story is changing—especially in the Bay Area. With tech and AI companies expanding and more employers bringing people back to the office, we’re seeing people return. Companies like Salesforce, OpenAI and Google have embraced hybrid schedules, with many office-based employees working roughly 3 days a week in person—and some roles requiring 4–5 days. And when people return to the office, where they live matters again. Commute time. BART. Caltrain. Walkability. Being close to work. That’s putting renewed pressure on housing. San Francisco rents have climbed sharply, with median rents around $4,700/month in summer 2026. Some neighborhoods are considerably higher: 📍 Pacific Heights — ~$5,245 📍 Mission District — ~$3,898 📍 SoMa — ~$6,497 📍 South Beach — ~$6,747 📍 Rincon Hill — ~$6,900 And the areas attracting workers aren’t necessarily a surprise: SoMa, Mission Bay, Potrero Hill, Dogpatch, South Beach and Noe Valley all offer some combination of proximity, transit and urban lifestyle. Meanwhile, tech and AI companies are leasing office space again, signaling that the Bay Area remains a major employment hub. So no—I don't think the story is simply “everyone is leaving California.” California lost people. California kept people. And now, some people are coming back. As a real estate professional, I'm watching this closely because where people work is once again influencing where they choose to live. Carrie, you asked if everyone is leaving California… I say: Look again. 👀🌉
September 13, 2026