AI Tech Talent Drives Real Estate Demand in Key U.S. and Canadian Cities

AI Talent Growth Spurs Real Estate Demand Across North America

The surge in artificial intelligence (AI) technology is reshaping real estate markets in key U.S. and Canadian cities, driven by a rapidly expanding pool of AI-skilled tech workers. According to a CBRE analysis of LinkedIn data, the number of professionals with AI expertise in these countries increased by more than 50% between mid-2024 and mid-2025, reaching approximately 517,000 workers.

The concentration of this talent is most pronounced in the San Francisco Bay Area, New York City, Seattle, Toronto, and Washington, D.C., which together represent 35% of the total AI tech workforce. Notably, the New York metropolitan area experienced the largest absolute increase, adding 20,000 AI-skilled workers over the past year. Other cities including Atlanta, Chicago, Dallas-Fort Worth, Toronto, and Washington, D.C., each recorded year-over-year growth exceeding 75%.

AI Talent Influences Office Leasing Patterns

This expansion in AI expertise is impacting commercial real estate demand, particularly office space. In the first half of 2025, tech companies accounted for 17% of total U.S. office leasing, up from 10% in late 2022. San Francisco stands out as a focal point for AI innovation, with CBRE reporting that AI companies leased one out of every four square feet of office space over the past two and a half years.

Colin Yasukochi, executive director of CBRE’s Tech Insights Center, highlights that AI work remains predominantly office-based, with employees typically working on-site five to six days per week. This contrasts with other tech sectors that have increasingly adopted remote work, underscoring AI’s early-stage innovation requirements and driving sustained demand for office environments.

Residential Markets Benefit from AI-Driven Talent Influx

The migration of AI talent to these urban centers is also elevating residential real estate demand. CBRE’s report indicates apartment rents have risen across all leading AI tech markets between 2021 and 2024. Manhattan saw rent growth exceeding 14%, Washington, D.C. over 12%, Seattle above 7%, and San Francisco nearly 6%.

These increases are supported by robust AI tech salaries, which enable workers to afford rents even in high-cost cities. For instance, in Manhattan, AI tech workers allocate approximately 29% of their income to housing, while in San Francisco and Washington, D.C., this figure is as low as 19%, based on the affordability standard of 30% of income.

Financial Services and Real Estate Sectors Fuel AI Talent Demand

The demand for AI expertise extends beyond traditional tech firms to financial services, insurance, and real estate sectors—collectively known as the FIRE group. Financial institutions are intensifying their AI recruitment efforts to remain competitive against fintech companies leveraging AI innovations. This trend further amplifies office and residential market pressures in cities like Manhattan.

Yasukochi emphasizes that AI represents a nascent technology wave, potentially heralding another tech boom. This momentum is attracting talent to cities at the forefront of AI development, with significant implications for local real estate markets.