The Tech Elite’s New Wealth Is Pricing Out San Francisco’s Middle Class

The local housing market has reached a breaking point where even six-figure salaries fail to guarantee basic accommodation. Razniak, a 27-year-old team lead at software firm Rippling, currently pays $1,650 to share a living space with two roommates. Her attempt to secure a private unit under $5,000 per month was met with overwhelming competition; at one open house, 30 prospective tenants signed up within the first hour for a property listed at $5,200.

This volatility stems from a shifting economic landscape driven by the rapid rise of artificial intelligence. Companies like OpenAI and Anthropic are minting a new tier of employees whose compensation packages—boosted by equity and massive valuations—dwarf traditional tech wages. Research from Sacra suggests these firms, alongside SpaceX, could produce over 20 new billionaires, creating a housing environment where standard tech workers are routinely outbid. With the median home price in San Francisco hitting $1.7 million, Woodbury has already relocated to Lake Tahoe, while Razniak remains uncertain about her future in the city that was once the primary destination for her career ambitions.