BRIC Team reports: LOS ANGELES — The COVID-19 pandemic brought tough times for both Los Angeles and San Francisco. Rising housing prices combined with the opportunity to work remotely led to declines in population. Concerns over blights and quality of life became political issues.
But now, there are early signs of a postcrisis divergence in fortunes between the two cities. San Francisco is in the midst of a new tech boom fueled by artificial intelligence that has lured new residents to the city and boosted a downtown economy. The city netted a small increase in population last year, according to new U.S.
Background
Los Angeles County, by contrast, is still struggling. Population losses are continuing, and its economy is being hit by several forces including a shrinking Hollywood industry and President Trump's immigration policies that have slowed growth and upended some business sectors. It will take many more years to see whether this become a larger trend.
Key facts
- LOS ANGELES — The COVID-19 pandemic brought tough times for both Los Angeles and San Francisco.
- Rising housing prices combined with the opportunity to work remotely led to declines in population.
- Concerns over blights and quality of life became political issues.
- But now, there are early signs of a postcrisis divergence in fortunes between the two cities.
- San Francisco is in the midst of a new tech boom fueled by artificial intelligence that has lured new residents to the city and boosted a downtown economy.
What this means
Demographers say the San Francisco boost is notable but far from a sign of boom times ahead. In fact, many experts say high housing prices and other factors continue to make more affordable cities outside California very attractive, especially to younger people. "Housing is of course at the top of the line for most people who are leaving," said Hans Johnson, a senior fellow at the Public Policy Institute of California.
"San Francisco is experiencing a sort of AI boom even as other components of tech aren't doing as well." Census data show San Franicsco's population was up 0.62% in 2025, in contrast to statewide numbers that remained mostly flat while L.A. County recorded a 0.55% decrease. Another tech center just south of San Francisco — Santa Clara County — saw its population rise 0.33%.
