San Francisco crime hits 70-year low while AI funding soars 35%

President Donald Trump is intensifying calls to deploy the National Guard to San Francisco, even as the city experiences a remarkable AI-driven recovery with crime at historic lows and venture capital investment soaring. The timing creates a stark contrast between Trump’s federal intervention plans and San Francisco’s documented resurgence, highlighted by record-breaking AI funding that has pushed Bay Area investment 35% above previous annual peaks.

The big picture: San Francisco’s post-pandemic transformation is being powered by artificial intelligence investment, with venture capital funding expected to surpass 2021’s record $276 billion this year.

• The San Francisco Bay Area has captured 80% of AI venture funding through the third quarter, totaling $115 billion.
• By September’s end, the region was already 35% above its previous annual investment peak, according to CBRE, a commercial real estate services company.

Key safety improvements: Multiple crime metrics have reached historic lows, contradicting the narrative behind federal intervention calls.

• Overall crime rates dropped 30% from 2024.
• Homicide levels hit their lowest point in 70 years.
• Car break-ins reached 22-year lows, while event bookings and tourism are rising alongside residential real estate scarcity.

What they’re saying: The debate has divided tech leaders and local officials on whether federal troops are necessary.

• “San Franciscans are feeling positive about the direction of our city once again,” said Democratic Mayor Daniel Lurie in a statement released by Governor Gavin Newsom’s office.
• Salesforce CEO Marc Benioff initially supported Trump’s plan, telling the New York Times he’d back federal troops, but reversed course Friday: “Having listened closely to my fellow San Franciscans and our local officials, and after the largest and safest Dreamforce in our history, I do not believe the National Guard is needed.”
• Trump told Fox News’ Maria Bartiromo: “The difference is I think they want us in San Francisco.”

Economic momentum indicators: Multiple sectors show recovery beyond just AI investment.

• Tourism spending is expected to reach $9.35 billion this year, up from $9.26 billion.
• Tech companies increased their share of commercial leasing activity to 53% in 2025, the highest since 2019.
• Apartment rental prices surged 6% in August, significantly outpacing Chicago’s 3.75% increase.

Remaining challenges: Despite the positive trends, San Francisco still faces structural issues.

• Office vacancy rates remain high at 33.6% in the third quarter.
• Downtown retail struggles continue, with the flagship Nordstrom closure leaving San Francisco City Centre effectively empty.
• Homelessness and open drug use persist in concentrated areas.

Expert perspective: Ted Egan, San Francisco’s chief economist, believes the transformation extends beyond statistics.

• “It seems cleaner and safer now than it’s ever been in any of the time that I’ve been here,” said Egan, who has worked in San Francisco for more than 20 years.
• “Housing is probably as cheap as it’s going to get for a while,” he noted, indicating continued growth pressure ahead.