This California city’s mayor declared rental emergency as rents soared 25% in 2026. Is AI to blame?

San Francisco is becoming very unaffordable for people who work outside the technology industry, like scientists, nurses and teachers with steady jobs are struggling to find apartments as rents have risen and competition for available homes has intensified. Some have spent months searching and then moved elsewhere when they cannot find a place within their budget.

Rents in the California city have climbed 25% in a year, as per a SFGATE report. The monthly cost of a two bedroom apartment has crossed $6,000 for the first time, according to rental marketplace Zumper.

The surge has coincided with the artificial intelligence boom, raising concerns about whether high technology salaries are making it harder for other workers to compete. Mayor Daniel Lurie declared a rental emergency last month and introduced proposed laws aimed at helping residents stay in San Francisco. But the city's affordability problems remain a concern for renters trying to secure a home.

San Francisco's Rental Market Leaves Workers Struggling

Sonja Mihailovic spent six months finding an apartment. The scientist contacted at least 36 places before sharing her frustration on Reddit. Her post, titled “This housing market is insane,” attracted more than 1.5 million views in three days and prompted over 1,000 comments.

Mihailovic was searching with her friend Zorica Bruic, a nurse. Both have stable jobs and still they struggled to find a suitable apartment. The competition was fierce even when they viewed properties that were not luxury homes or in particularly sought-after neighborhoods.

Their experience took a frustrating turn when a landlord raised the asking rent by $250 after they applied for a home in the Inner Sunset. The same property had rented for $1,500 less in 2024.

Mihailovic moved to the Bay Area in 2024 to pursue a career in cell therapy. She wanted to live in San Francisco rather than continue commuting from Belmont to her workplace in South San Francisco, but the cost of renting made that difficult.

She said, “I thought I did everything right that I was supposed to do, and I still can’t afford to step foot in the city,” as quoted by SFGATE.

Is the AI Boom Contributing to Rising Rents

San Francisco's rental pressures have coincided with the growth of the AI industry. Mihailovic acknowledged that AI could be an easy target for blame, but pointed to high technology salaries and a shortage of housing as contributing concerns.

The issue is not simply the price of a particular apartment. Workers in other professions say they are struggling to compete in a market where some applicants can afford to pay more.

Bruic, who lives in a small studio, had hoped to find a larger home while saving toward buying a property of her own.

The experiences of renters do not establish that AI alone caused the increase in rents. They do highlight concerns about the combination of high salaries in the technology sector and limited housing options.

Mayor Declares a Rental Emergency as Eviction Notices Rise

Mayor Daniel Lurie has proposed a package of ordinances intended to help teachers, nurses, artists and restaurant workers remain in San Francisco.

Lurie said in an address to residents, “The people who make San Francisco what it is. ... There is no recovery without them.”

The measures come as eviction notices are on pace to reach their highest number in a decade, rising 44% this year. Housing experts told SFGATE that the proposals could help keep people housed but were unlikely to make apartment rents affordable.

The challenge extends beyond people moving to the city for work. Sean Taylor, who grew up in San Francisco, returned to the Bay Area with his girlfriend, a fourth-grade teacher, hoping to live near his family. After months of searching, they found a rental in Mill Valley rather than San Francisco.

Scientist Dunja Mrdjen also left the city after her landlord informed her that the rent on her one-bedroom apartment would increase by $1,000 a month. She eventually found a home in Pacifica after struggling to secure another affordable place.