As outlying areas slump, the San Francisco housing market is booming again.
Six months into 2026, the city’s home prices, which during the pandemic took one of the steepest falls in the country, have continued their dramatic rebound. Some of San Francisco’s most exclusive neighborhoods have led the region in home value growth since the start of the year, with artificial intelligence workers and investors competing for a rapidly shrinking number of listings.
But the massive glut of wealth being created by the AI industry hasn’t jump-started home sales in most of the Bay Area — at least, not yet. In fact, much of the region, like the rest of the U.S., has spent the first half of this year in a slump. That gives buyers in those markets more leverage over sellers, but it also reflects the fact that layoffs, high prices and rising mortgage rates have left few families able to place bids…