The AI boom in San Francisco is luring startups, offering employees generous benefits in a costly housing market. CEOs like Roy Lee of Cluely lease luxury apartments for staff, with rents ranging from $3,000 to $12,000 a month. Lindy’s CEO, Flo Crivello, provides a $1,000 rent stipend for those living nearby.

San Francisco has attracted 70% of AI venture capital funding nationwide since 2019, leading to rent inflation. The Bay Area is a top market for AI talent, with 517,000 tech workers skilled in AI across the U.S. and Canada. Hybrid work arrangements are gaining traction, with tech talent spending more time in the office.

Apartment prices in San Francisco surged 6% over the past year, with Mission Bay seeing a 13% rent increase. The average rent in the city is now $3,315, just below New York City. The housing market in San Francisco experienced the strongest annual growth in two-bedroom and one-bedroom rents nationally.

The tech sector’s hiring surge and stricter return-to-office policies have driven renters to San Francisco, causing housing demand to outpace supply. The city’s vacancy rate has dropped to pre-pandemic levels, with new housing construction at a decade low. Luxury complexes like the one Cluely leased saw high demand, with half of the units leased within two months.

The AI boom in San Francisco is reshaping the housing market, with startups offering attractive benefits to employees. The city remains a magnet for tech talent, driving up rents and creating challenges in the housing sector. With demand outstripping supply, the future of San Francisco’s real estate market remains uncertain.

Read more at Yahoo Finance: AI startups are leasing luxury apartments in San Francisco for staff and offering large rent stipends to attract talent