Unable to afford a home despite earning $500,000: US youth pushed out by 'AI super-rich'

In Silicon Valley, a stark reality is emerging for young professionals: even with combined annual incomes exceeding $500,000, finding a place to live has become an insurmountable challenge. Kathrin Razniak, 27, a client account manager, and Adam Woodbury, 39, a software engineer, exemplify this struggle. Despite their substantial earnings, they have been unable to secure a one-bedroom apartment after searching for three months.

The explosive growth of the artificial intelligence (AI) industry has led to the emergence of "super-rich" individuals whose purchasing power far exceeds that of long-term residents and aspiring professionals. This influx has caused a dramatic surge in prices for both goods and housing. Companies like OpenAI, Anthropic, and SpaceX have contributed to a significant increase in average salaries in Silicon Valley, with the average salary rising from $153,359 in 2020 to $196,365 last year, according to the U.S. Bureau of Labor Statistics.

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I feel like I don't even have the right to live here anymore just because I don't work for an AI company.

San Francisco's cost of living is 65.6% higher than the U.S. average, with utilities, transportation, and groceries all significantly more expensive. Rental prices are also the highest in the nation, averaging $3,827 per month for an apartment, surpassing even New York City. Vacancy rates have plummeted from around 13% in 2020 to about 3% currently, making finding an available room akin to searching for a needle in a haystack.

This housing crisis disproportionately affects younger workers. Razniak, who moved to San Francisco in 2022 and saw her salary increase to $180,000, and Woodbury, earning $185,000, found themselves priced out. They eventually had to separate, with Woodbury moving to a more affordable area and Razniak sharing a room with two others for $1,650 per month. Woodbury expressed his disillusionment, stating, "I feel like I don't even have the right to live here anymore just because I don't work for an AI company."

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We want to own a home, have a garage, and storage space. But here, it feels like it's just out of reach.