SAN FRANCISCO—A growing number of technology workers in the San Francisco Bay Area say six-figure salaries that once signaled financial security are no longer sufficient to keep pace with soaring housing costs and a new wave of wealth tied to the artificial intelligence industry, according to recent reporting and interviews with residents.
The affordability concerns come as the Bay Area experiences renewed competition for housing amid the rapid expansion of AI companies, with some workers saying they have scaled back spending, delayed housing plans or considered leaving the region despite earning well above the national average.
Among those interviewed, Katrine Razniak, a recruiter earning about $180,000 annually, and her partner, software engineer Adam Woodbury, who earns roughly $185,000, said they spent months searching for a one-bedroom apartment renting for less than $5,000 a month. After viewing dozens of properties and facing intense competition, they abandoned the search. Razniak said she had expected a salary approaching $200,000 to eliminate many financial concerns but instead found herself remaining cautious about everyday spending.
Other young professionals described similar experiences. Jolie Gan, who earns about $250,000 annually through two jobs, said she had moved multiple times after encountering unsuitable housing, while others reported intense competition for rental listings. One renter said a posting for two rooms in a shared house generated nearly 90 responses within 24 hours, illustrating strong demand for relatively affordable accommodation.
Housing experts and economists have long identified constrained housing supply, decades of underbuilding and sustained demand from high-paying industries as major drivers of the Bay Area's affordability challenges. Researchers say successive technology booms have increased pressure on both rental and home prices, with the latest AI expansion adding further demand in parts of San Francisco.
Despite the financial strain described by some workers, compensation in the region remains among the highest in the technology sector. Industry compensation data indicate Bay Area software engineers continue to command some of the world's largest pay packages, particularly at leading AI companies, although analysts note that taxes and housing costs substantially reduce purchasing power.
The affordability debate also unfolds against a backdrop of continued uncertainty in the technology employment market, with layoffs at several major firms earlier this year prompting some workers to prioritize financial reserves over home purchases or higher housing costs.
