Trump’s National Guard Proposal Amid San Francisco’s AI Growth
President Donald Trump is intensifying his proposal to deploy the National Guard to San Francisco, coinciding with the city's AI-driven post-pandemic resurgence.
Crime rates have decreased by 30% since 2024, with homicide levels at a 70-year low and car break-ins at their lowest in 22 years. Meanwhile, event bookings and tourism are rising, residential real estate is becoming scarce, and the office market is gaining momentum.
The city's business momentum is largely fueled by the AI boom. New data from CBRE indicates that venture capital funding in 2025 is expected to surpass the record high of $276 billion set in 2021. Most of this investment is concentrated in San Francisco and Silicon Valley, with $115 billion directed towards AI ventures by the third quarter.
San Francisco's Democratic Mayor Daniel Lurie expressed optimism about the city's direction in a statement released by Governor Gavin Newsom's office. The statement highlighted the successful efforts of local law enforcement ahead of Salesforce's annual Dreamforce conference.
The Trump administration recently deployed the National Guard to Chicago and Portland, Oregon, leading to protests and lawsuits. Over the weekend, President Trump reiterated his plans to send troops to San Francisco, stating that the city desires their presence. The White House did not immediately respond to CNBC's request for comment on the President's plans.
Lurie praised the safety of recent events such as Dreamforce and the No Kings Protests. He has not directly responded to Trump's calls for the National Guard and has taken a less confrontational approach compared to Newsom.
Tourism spending is projected to rise modestly this year to $9.35 billion, up from $9.26 billion. Conferences, sporting events, and music festivals have contributed to this growth. The commercial real estate market is also recovering as remote work policies gradually unwind.
Tech companies have increased their share of leasing activity to 53% in 2025, the highest since 2019. Apartment rental prices are surging, with multifamily rentals increasing by 6% in August. Despite challenges, San Francisco remains a city with significant economic opportunities.