San Francisco's average rent has surged 18% to $3,728 monthly due to an AI hiring boom and limited new apartment supply, causing intense bidding wars. Vacancy rates dropped to 3.7%, the lowest since 2019, pushing rents higher in nearby metros. High demand near tech hubs and slow construction amid regulatory challenges fuel competition, forcing renters to offer above asking prices and landlords to seek buyouts. Rising rents and tight supply are expected to persist.