Luxury homes are hot again in San Francisco

Thanks to the artificial intelligence boom and a new mayor intent on reviving the Golden City, San Francisco’s luxury home market is experiencing a surge of sales, according to the 2025 Mid-Year Outlook Report by Sotheby’s International Realty.

Bradley Nelson, Sotheby’s International Realty’s chief marketing officer, told Bloomberg that last year more than $20 million homes sold in the city than in any other year to date and saw its biggest sale ever when Laurene Powell Jobs — billionaire philanthropist and Steve Jobs’ widow — purchased a mansion for about $70 million. 

The city’s luxury market has kept up a similar pace so far for 2025, with an Atherton mansion selling in April for $51.5 million, the largest residential home sale this year. 

Nelson added that San Francisco is a hot spot for entrepreneurs and tech investors who want to get in on the AI boom due to the city’s access “to the labor pool with that technical expertise.” Another analysis found that increased interest in investing in AI could also increase real estate deals for office spaces. 

Additionally, buyers of the multimillion-dollar homes are investing in renovations that could take years to complete, which Nelson told Bloomberg indicates a longer-term investment in the area. 

This change in San Francisco’s luxury real estate market is aligned with other markets around the country and world. According to the report, New York City, Utah, and some countries in Europe are also experiencing a boom in their luxury markets. 

Sales for luxury properties (homes $10 million or more) in New York City increased by 115% while Utah set a state record with 15 sales priced above $15 million, according to the report. Nelson told Bloomberg that Americans are snatching up luxury properties in countries like Portugal, Italy, France, Spain, and in the U.K. due to currency fluctuations. Plus, Washington, D.C., saw an increase in luxury sales earlier this year due to President Trump’s return to office. 

Philip A. White Jr., president and CEO of Sotheby’s International Realty, said that luxury homes have outperformed the rest of the housing market in 2024 and so far in 2025 due to luxury property buyers' ability to pay in cash rather than borrow at high interest rates, adding that the current strength in the luxury property market can be attributed to the end of a volatile global election year and a shortage of luxury homes in some areas driving up prices.