In San Francisco, home sales rose 9% year over year in July, with the median sale price climbing 6% to $1.6 million. The city, home to industry leaders like OpenAI and Anthropic, is seeing luxury demand soar as employees leverage six-figure signing bonuses and anticipated IPO windfalls to secure property. Inventory in the city has tightened significantly, falling 18%—the sharpest decline in the nation—leaving only 1.6 months of supply available for buyers.

Conversely, Seattle’s market is struggling under the weight of tech-sector layoffs and economic uncertainty. Home sales there fell 9% in July, and the median price dropped 4% to $809,000, representing one of the largest declines among major U.S. metros. While San Francisco shifts toward a balanced market, Seattle has become a buyer’s market with inventory levels rising 17%. According to Chen Zhao, head of economics research at Redfin, AI is effectively reorganizing the labor market, creating concentrated wealth in San Francisco while causing households in Seattle to adopt a more cautious stance toward major financial commitments.