Thought It Was a Salary, But It's $5,860 Rent... Even a $190,000 Salary Can't Keep Up in This City

San Francisco Workers' Salaries Surpass $190,000
AI Capital Influx Drives Up Housing and Living Costs

Employees in San Francisco, the heart of Silicon Valley and the U.S. innovation industry cluster, earn annual salaries of around $190,000 (approximately 300 million KRW), but even these high-income earners reportedly struggle with housing and living costs.

The average apartment rent in San Francisco reached $3,827 per month (approximately 5.86 million KRW), setting a new record for the highest rent in the United States. Getty Images

According to the New York Times (NYT) on June 29 (local time), an influx of artificial intelligence (AI) capital into San Francisco has caused even tech industry workers to feel burdened by housing costs. San Francisco has long been notorious for high housing expenses, but the recent arrival of AI companies such as OpenAI and Anthropic, bringing in new talent and capital, has further intensified the pressure.

According to the latest cost of living index from the Council for Community and Economic Research, the cost of living in San Francisco is 65.6% higher than the national average. The median home price in San Francisco is $1.7 million (approximately 260 million KRW), which is more than three times the U.S. national median price of $450,000 (about 69 million KRW).

This has led to a surge in rental prices, including monthly rent. According to real estate data firm CoStar, the average apartment rent in San Francisco has reached $3,827 per month (approximately 5.86 million KRW), setting a new record for the highest rent in the United States. Nigel Hughes, Senior Researcher at CoStar, compared San Francisco's rent situation to "a pressure cooker heating up rapidly."

San Francisco skyline. Photo by AP Yonhap News

As housing costs have risen, the burden of other living expenses has naturally increased as well. Public utility costs in San Francisco are 41% higher than the U.S. average, transportation costs are 43% higher, and groceries cost 19% more. The average annual salary for workers in San Francisco reaches $196,365 (about 300 million KRW), but after deducting housing and living expenses, the cost of living can feel quite tight.

Ted Egan, Chief Economist for San Francisco, pointed out, "High-income earners have long debated whether to accept the pros and cons of living in San Francisco, or to move to other areas with yards and garages."

This content was produced with the assistance of AI translation services.