This article initially appeared in CNBC’s Property Play newsletter from Diana Olick. Property Play explores new and changing real estate chances. It serves investors from individuals to large companies. Sign up for more editions.
AI affects everything. So, it’s not surprising that cities need more AI tech workers. This drives demand for office, housing, and retail space.
Tech workers skilled in AI grew over 50% in the US and Canada. This happened from mid-2024 to mid-2025. Now, there are 517,000 such workers. This is from a CBRE study of LinkedIn data. Most of these workers are in the San Francisco Bay Area, New York City, Seattle, Toronto, and Washington, D.C. The top three cities hold 35% of all these workers.
New York added the most AI talent in the past year. It gained 20,000 new AI-skilled workers. Atlanta, Chicago, Dallas-Fort Worth, Toronto, and Washington, D.C. all saw over 75% growth. This growth includes new jobs. It also includes workers learning new AI skills. Some workers entered the field with these skills.
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“AI is a big deal for San Francisco,” says Colin Yasukochi of CBRE. “It is the center of the AI movement. Major companies like OpenAI are there.”
Silicon Valley started the tech boom. Now, AI is spreading wider. It is reaching places basic tech is leaving. AI talent is in high demand. This is especially true for finance, insurance, and real estate. That is why Manhattan sees more office and apartment interest.
Finance firms must adapt. AI makes fintech companies more competitive. While other tech sectors shrank, finance hired many AI workers.
AI is still new and developing. This means AI work is often in the office. This differs from other tech jobs that went remote. In early 2025, tech firms leased 17% of US office space. This is up from 10% in late 2022.
In San Francisco alone, AI companies leased one-fourth of office space. This occurred over the last 2.5 years. CBRE reported this data.
“AI work is mostly in the office,” Yasukochi notes. “It is like early tech days. People work in the office many days a week. They work long hours too.” He adds, “This has boosted office space demand.”
People moving to these tech hubs also impact housing. This is according to a CBRE report. Rents have risen in all top AI tech markets.
Apartment rents grew significantly. Manhattan rents rose over 14% from 2021 to 2024. D.C. saw over 12% growth. Seattle rents increased by more than 7%. San Francisco rents climbed nearly 6%.
AI tech salaries can cover these high rents. CBRE uses 30% of income for housing costs. Most top markets meet this standard.
In Manhattan, rents are highest. Yet, tech worker pay is high. Workers spend only 29% of their income on rent. The San Francisco Bay Area is similar.