How AI Is Driving Real Estate Markets in 2025
- Sarah Breck
- Oct 13
- 3 min read
Artificial Intelligence isn’t just transforming technology — it’s reshaping entire real estate markets.From San Francisco to New York, the surge in AI-driven tech jobs is boosting rents, reviving office spaces, and fueling new waves of urban investment.
This analysis is based on CNBC’s Property Play by Diana Olick, which highlights how the AI talent boom is directly impacting housing demand across North America.
📈 The AI Talent Surge — and Where It’s Concentrated
Across the U.S. and Canada, the number of professionals with AI skills grew by over 50% from 2024 to 2025, reaching 517,000 workers, according to CBRE’s analysis of LinkedIn data.
Top AI job markets include:
San Francisco Bay Area
New York City
Seattle
Toronto
Washington, D.C.
Together, the top three account for 35% of all AI talent.
But it’s not just coastal cities seeing growth. Atlanta, Chicago, Dallas-Fort Worth, and Toronto have recorded 75%+ year-over-year growth in AI-related positions — a sign that tech migration is spreading inland.
💡 Many of these aren’t new roles but upskilled workers expanding into AI systems, automation, and data science — a trend redefining the modern tech workforce.
🏦 Why Wall Street and Real Estate Are Hiring AI Experts
The FIRE industries — Finance, Insurance, and Real Estate — are now competing for AI talent, according to CBRE’s Tech Insights Center.
Financial firms are using AI for smarter risk management, predictive analytics, and automated trading. That shift has intensified demand for in-office collaboration, particularly in Manhattan, where fintech and investment tech are booming.
🏙️ This hybrid of finance and AI is breathing new life into the office market — and pushing local housing demand even higher.
🏢 The Return of the Office Market
Despite predictions that office space was “dead,” AI is helping drive a rebound.
In the first half of 2025, tech companies accounted for 17% of all U.S. office leasing, up from 10% in 2022. In San Francisco alone, 1 out of every 4 square feet leased since 2023 has been by AI firms.
Unlike other tech sectors, AI companies prioritize in-person collaboration — long hours, creative problem-solving, and fast iteration cycles. Think of it as Silicon Valley 2.0: fewer bean bags, more brainpower.
🏘️ AI Talent and Rising Apartment Rents
With thousands of new, high-earning AI professionals flooding major metros, rents are rising — again.
From 2021 to 2024, apartment rents increased sharply across top AI hubs:
🗽 Manhattan: +14%
🏛️ Washington, D.C.: +12%
🌲 Seattle: +7%
🌉 San Francisco: +6%
Yet AI professionals can easily afford it. According to CBRE, AI salaries mean workers in Manhattan spend just 29% of their income on rent — well below the 30% affordability threshold. In San Francisco and D.C., it’s closer to 19%.
That means the AI housing boom isn’t slowing down — it’s accelerating.
🌍 AI’s Broader Impact on Real Estate Investment
“AI is another potential tech boom,” says Colin Yasukochi, Executive Director at CBRE’s Tech Insights Center. “It’s still early days, but it’s already reshaping where people live and how cities grow.”
This echoes what we’ve seen before:
The dot-com boom built Silicon Valley.
The fintech surge revitalized Manhattan.
Now, the AI revolution is redrawing real estate maps across the continent.
From multifamily investments to office redevelopment projects, investors are targeting cities with AI growth — betting on the next generation of “innovation hubs.”
✨ What This Means for Buyers, Sellers, and Investors
If you’re in real estate — whether you’re buying, selling, or investing — this trend matters.
For buyers: Expect higher rents and property values in AI-heavy metros.
For sellers: Leverage the demand from high-income tech workers relocating for jobs.
For investors: Watch for secondary markets like Dallas, Atlanta, and Toronto, where AI growth is outpacing traditional tech hubs.
Here in Boise, we’re already seeing early signals of tech migration — remote workers, startups, and AI entrepreneurs exploring new, affordable markets.
🪞 Final Takeaway
AI isn’t just transforming industries — it’s shaping entire neighborhoods.The influx of tech talent, the revival of office demand, and the spike in urban rents are all connected to this new wave of innovation.
Stay tuned as I continue breaking down how national tech shifts — like AI and automation — are quietly influencing the Boise real estate market and beyond.
Written by:Sarah Breck | Real Broker, Boise, IdahoHelping you make confident, educated real estate decisions — with a touch of grace, humor, and a good dose of data.
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