You've probably heard the term "K-shaped economy," the idea that the top and bottom are moving in opposite directions. Compass Chief Evangelist, Leonard Steinberg, recently made a compelling case that when it comes to housing, the more accurate shape is a G, for generational. Older buyers hold an outsized share of buying power right now, and the numbers back it up. The average homebuyer today is 40, but the median is 62. Baby boomers now make up around 42% of all buyers.

Here in Lamorinda, I'd argue we're seeing something even more specific. Call it a GAI market: generational wealth and newly earned AI wealth, both showing up at the same open houses.

The generational piece looks familiar to us. Grandparents helping with a down payment. Parents co-buying with adult children who want to raise their own kids in the same school district they grew up in. Equity built decades ago continues to become the foundation for the next chapter of a family's life here.

The AI piece is newer, and it's arriving fast. While most of the headlines about AI driven wealth focus on San Francisco, the Peninsula, and Marin, we're seeing our own version of it in the $3 million plus market, often tied directly to school district appeal. Buyers who have had a sudden liquidity event want to plant roots somewhere stable, and Lamorinda's combination of top schools, small-town feel, and proximity to San Francisco makes that an easy decision for many.

Two very different paths to buying power are landing in the same three towns. It's part of why our luxury segment continues to perform well even as affordability headlines dominate elsewhere, and why we expect that trend to continue into fall.

If you're curious how any of this shows up on your own street, or in a neighborhood you've had your eye on, just reply and let us know. Always happy to talk it through.