In a challenging real estate market amplified by the AI boom, Alexandria Belton, a 33-year-old house hunter in the Bay Area, shares her journey to find an affordable home. This account has been edited for length and clarity.
Belton and her fiancé embarked on their home-buying journey in October 2025. While many opt for condos due to the high cost of single-family homes and the appeal of urban living, Belton seeks a suburban single-family home with a yard. She notes that condos offer poor returns on investment, with most selling at or below list price, unlike other properties that exceed listing prices. This trend is evident in the current market.
Residing in a two-bedroom, two-bath apartment in the Marina District since 2020, Belton moved there when rents were declining. Initially priced at $3,695, her rent increased retroactively to $4,378 in fall 2025.
Her fiancé’s construction background makes fixer-uppers appealing. They began with a budget of $1.2 million, knowing it would be challenging in the city, even before the AI boom. Despite finding many fixers on the market last year, recent visits have been discouraging. For example, a fixer listed at $700,000 to $800,000 sold for $1.3 million before renovations.
Courtesy of Alexandria Belton
Their strategy to find affordable properties led them to expand their search beyond the city. A promising fixer priced at $700,000 to $800,000 ended up selling for $1.3 million, highlighting the market’s volatility.
I’ve expanded my budget, and it’s still not enough
Belton quickly learned not to trust list prices, as many homes sell for at least $300,000 over asking, with some exceeding by over $1 million. Her budget increased to $1.5 million due to these market conditions. Exploring Marin, a charming area north of the Bay, they hoped for a less competitive market.
In Marin, Belton’s new agent assured her that homes often sell close to the asking price. However, their first bid on a $1.1 million home was outbid by a $1.9 million sale for a 1,200 square-foot property requiring significant work.
Courtesy of Alexandria Belton
Her agent commented, “Unfortunately, now we are starting to see the things that are happening in the city as people are probably having the same idea as you to expand their search.”
Belton has encountered similar stories, with others blaming the city’s AI boom for the drastic price increases. She remains uncertain about the future, hoping this market phase will pass.
I’m hoping this all blows over soon
After placing 10 bids, Belton nearly secured a house in Marin but felt the price was too high for its value. She prioritizes financial stability, refusing to stretch beyond their $1.5 million budget. Despite using AI for budgeting, they cannot exceed this cap.
Courtesy of Alexandria Belton
The process has been mentally exhausting, with Belton feeling disadvantaged despite having strong financial credentials. “The competition feels unfair. It feels like we don’t really stand a chance,” she says, yet she remains hopeful for future opportunities.
