San Francisco's mayor, Daniel Lurie, declared a rent emergency on Thursday, proposing reforms aimed at curbing evictions and preventing rent spikes as the city grapples with soaring apartment prices. This was reported by Qazaqyia.kz citing The Guardian.

The Bay Area city, home to a large number of high-earning tech workers, has long been one of the most expensive housing and rental markets in the country. The ballooning rental costs have been attributed to a recent influx of wealth in the market, as artificial intelligence companies began to go public on the stock market.

The median rent for a one-bedroom apartment in San Francisco is currently $4,495, according to Zumper, a rental listings site. In comparison, the national median for a one-bedroom apartment is $1,900.

While demand has ratcheted up for limited housing options, San Francisco has notoriously lagged behind other cities in approving new housing. The city's housing market has been under pressure for years, and the AI boom has intensified the situation by bringing a new wave of wealth to the city.

Among Lurie's proposed measures are caps to rent increases for rent-controlled apartments, $27m in funding to cover funding lapses from federal housing vouchers set to expire and an increase in payments to tenants who are evicted under the Ellis Act, legislation landlords can evoke when leaving the rental business.

"Today, most San Franciscans feel our city is finally moving in the right direction, but many are also asking whether they can still afford to live here," Lurie said in a statement on Thursday.

"We have lived through booms before – this time, we have an opportunity to build a recovery that is broad-based and lasting, where San Franciscans can put down roots and participate in our city's success."

The North Beach neighborhood in San Francisco is where rents are soaring as the AI boom brings a new wave of wealth to the city. The situation in this neighborhood is a clear reflection of the housing affordability crisis across the city.

The mayor's proposals are expected to go before the city council, though there is no precise information on when they might take effect. San Francisco authorities have long tried to maintain balance in the housing market, but with high demand and limited supply, curbing price growth has proven difficult.

Rising rents are not unique to San Francisco — housing affordability is a pressing issue in major cities across the United States. However, San Francisco is in a particularly acute situation due to the concentration of the tech sector. The public listings of AI companies brought new wealth to the city, but that wealth has put additional pressure on housing prices.

The central message of Lurie's statement is to learn from past booms and ensure that this time the recovery is broad-based. He aims to preserve the ability for San Franciscans to put down roots and participate in the city's success.

One of the most important proposed measures is capping rent increases for rent-controlled apartments. This measure is aimed at protecting tenants from sharp rent hikes. Additionally, $27m in funding is proposed to cover funding lapses from federal housing vouchers set to expire — this is intended to cover the financial gap arising from expiring vouchers.

Increasing payments to tenants evicted under the Ellis Act is also among the proposals. The Ellis Act is legislation landlords can evoke when leaving the rental business. Increasing payments to evicted tenants under this law is aimed at easing their financial situation.

The housing market situation in San Francisco has long been tense. The city has notoriously lagged behind other cities in approving new housing, which has led to limited supply. The AI boom has further exacerbated this situation, as the influx of high-earning tech workers has increased demand for housing.

The mayor's proposals require approval from the city council. If adopted, these measures could help curb price growth in San Francisco's rental market and protect tenants. However, experts hold differing views on the long-term effects of these measures.