Luxury houses are getting a boost thanks to AI boom

America’s luxury housing market is being transformed by the AI boom, especially in high-tech regions like Silicon Valley and San Francisco, while the broader housing market continues to stagnate.

According to a new Redfin report, the median luxury home sale price rose 3.6% year over year to $1.39 million during the three months ending April 30. This is more than double the 1.4% gain seen in non-luxury properties.

The boom is most visible in San Francisco, the epicenter of AI innovation. The luxury home market there posted a staggering 48.4% year-over-year increase in luxury pending sales for April—the largest since June 2021. In March, the median house price in the area hit a record $2.15 million.

Rents, meanwhile, have risen rapidly as tech workers return to the city amid the AI boom.

Luxury home sales also remain strong in the Hamptons, Tampa, West Palm Beach, and Miami.

The median sale price for homes in the Hamptons hit a new record of $2.34 million in last year’s final quarter.

Real estate agents note that affluent buyers remain largely unaffected by fluctuating borrowing costs and geopolitical tensions.