The Return to Urban Living
After years of suburban and rural migration during the pandemic, cities have been making a comeback in the past couple of years. According to the National Association of Realtors (NAR), the percentage of people moving to cities has risen to 16%. While that may not sound like a big number, it is the highest level in a decade – and that’s a big deal (see graph below):. And data from BrightMLS seems to confirm this trend. In a recent survey, 1 in 5 (20.6%) people looking to buy say they want to live in the city. (keeping current matters citation)
SF’s Urban Revival
San Francisco is no exception. While its rebound has been slower than some other cities, momentum is building, and a variety of factors are fueling this transformation. With a booming tech industry, AI investment, a revitalized business climate, and a stronger tourism sector, San Francisco is rising from the ashes and poised for a true urban revival.
Over the past few years, San Francisco has weathered some tough times. From the exodus of residents during the pandemic to concerns about public safety and a struggling downtown, many people have questioned the city's future. But here’s the reality: San Francisco is making a comeback.
What’s fueling the city’s revival?
While the recovery hasn’t been instant, progress is happening—and in ways that will shape a stronger, more resilient city. From the tech industry’s resurgence to a tourism revival and business-friendly policies, the pieces are coming together for San Francisco to thrive again. If you’ve been feeling uncertain about where the city is headed, here’s why there’s reason to be optimistic.
1. The Tech and AI Boom Is Reenergizing the Economy
Tech has always been the backbone of San Francisco’s economy, and after a period of uncertainty, the industry is back in growth mode—particularly with artificial intelligence leading the charge.
San Francisco is the global epicenter of AI development, home to companies like OpenAI, Anthropic, and Scale AI. The AI industry saw $115 billion in investments in 2024, and San Francisco is at the heart of it. OpenAI’s decision to lease an entire six-story office tower in Mission Bay shows a renewed confidence in the city as a place for innovation and talent.
Tech layoffs that dominated headlines in 2022 and 2023 are giving way to new hiring. As AI companies expand and venture capital flows back into startups, more workers are coming back to the city, driving demand for housing, restaurants, and local businesses.
2. Tourism and Hospitality Are Thriving Again
San Francisco’s tourism industry, which took a major hit during the pandemic, is bouncing back in a big way. Hotel occupancy rates are climbing, and the city is booking major conferences and events that bring thousands of visitors—and millions in revenue—back into local businesses.
Upcoming high-profile events, including major sports tournaments and music festivals, are expected to drive even more foot traffic to the city. This isn’t just about hotels filling up—it’s about restaurants, small businesses, and cultural attractions thriving again.
Union Square, long seen as a symbol of downtown’s struggles, is also seeing signs of life. Vacant retail spaces are filling up, and efforts to clean up and improve safety are working.
3. New Business-Friendly Policies Are Helping Downtown Recover
One of the biggest concerns for San Francisco residents has been the state of downtown. Office vacancies skyrocketed, and some of the city’s busiest areas became noticeably emptier. But the tide is turning.
New leadership under Mayor Daniel Lurie has prioritized bringing business back to the city. Policies aimed at improving public safety, cleaning up streets, and addressing the fentanyl crisis are already having an impact. Police presence has increased, and businesses that once considered leaving are now reinvesting in their San Francisco locations.
Major employers are requiring workers to come back to the office at least part-time, which means more people commuting into the city, supporting restaurants, cafes, and retail shops. It may not be an overnight transformation, but downtown is on its way back.
4. The Housing Market Is Showing Strength
After a period of uncertainty, San Francisco’s housing market is proving its resilience. Median home prices rose 2.1% year-over-year to $1.4 million, and early 2025 has been one of the busiest starts to the year in recent memory for home sales.
Why? Because people are recognizing that San Francisco still has so much to offer. Buyers who once hesitated are now stepping back in, and homeowners who were once unsure about their investments are seeing values climb again.
For current residents, this is a sign of stability and confidence in the city’s long-term future.
San Francisco Isn’t “Over”—It’s Just Getting Started Again
The past few years haven’t been easy, but the progress we’ve made is real. The city isn’t just surviving—it’s evolving.
The AI boom is bringing jobs and investment.
Tourism is returning, boosting businesses and cultural institutions.
New policies are making downtown safer and more vibrant.
The real estate market is stabilizing, proving long-term confidence in the city.
If you’ve lived in San Francisco through the tough times, now is the moment to recognize the change that’s happening. This is our city’s rebirth, and the best is yet to come.
What’s something you’ve noticed improving in San Francisco lately? I’d love to hear your thoughts—drop a comment below! And if you’re thinking about your next move in the city, let’s connect.
Sources:
How AI tech companies, Trump could impact future of SF’s commercial real estate market
Comentarios