The real estate landscape in North America is undergoing a significant transformation, driven by the growing presence of AI talent. Cities like San Francisco, New York, Seattle, Toronto, and Washington, D.C. are witnessing a surge in tech workers with AI skills, with the number of professionals in the US and Canada increasing by over 50% between mid-2024 and mid-2025.
This influx of AI talent has led to a notable impact on the office space demand, with AI firms driving leasing activity. In the first half of 2025, AI companies accounted for 17% of total US office leasing, up from 10% in late 2022. San Francisco, in particular, has seen AI companies lease one-quarter of all office space over the last 2.5 years.
The residential market has also felt the effects, with apartment rents increasing in AI hubs. Manhattan rents have risen over 14%, D.C. rents are up 12%, Seattle has jumped 7%, and San Francisco has climbed nearly 6% since 2021. The concentration of AI talent in certain cities is notable, with the top three markets – San Francisco Bay Area, New York City, and Seattle – holding 35% of the national total of AI-skilled workers.
Beyond the tech sector, financial services, insurance, and real estate companies are also hiring AI talent to stay competitive. Some cities have seen 75% year-over-year gains in AI-skilled workers, highlighting the growing demand for AI expertise.
As AI continues to reshape the real estate landscape, it's likely that we'll see further changes in the way companies operate and the skills they require from their employees. The growth of AI talent in North America is transforming the industry, driving innovation, and creating new opportunities for businesses and professionals alike.
