The average San Francisco home sold for nearly 90% over the asking price in March, according to Redfin.

The city is now the most expensive metro area in the country.

Artificial intelligence is driving much of those costs, as companies grow and hire, with many requiring staff to work in person.

Housing inventory, on the other hand, isn’t keeping up.

NBC Bay Area spoke with Arrian Binning, an agent with the Binnings Team at Christie’s San Francisco, who said the city is expensive but worth the investment.

“San Francisco is one of the best markets in the world,” Binning said. “I’ve seen supply constriction benefit property owners, so when you’re a property owner in a market that has scarce inventory but also is an engine of growth, that’s kind of the trifecta in terms of investing your hard-earned dollars into a new home.”

San Francisco bumped San Jose out of the top spot.

In San Jose, the median home price in March was more than $1.46 million, about what it was a year ago.

NBC Bay Area’s Kris Sanchez has the full report in the video above.

On April 15, back in the year 1850, San Francisco was first incorporated as a city. Each year on April 15, many in San Francisco celebrate 415 day, honoring that anniversary and the date that aligns with the city’s area code. Wednesday, thousands of people headed to The Crossing at East Cut for a night market to ring in the occasion.

This night market was hosted by San Francisco-based record label EMPIRE along with the East Cut Community Benefit District. The event brought a fleet of food trucks and local vendors to the plaza at The Crossing at East Cut, as well as musical talent performing throughout the evening. This night market was free for attendees and drew in people of all ages, many of whom were decked out in their most San Francisco-inspired outfits.

“We are so honored to have this happening here at The Crossing at East Cut, to be welcoming people from across the city, from across the Bay Area, to come see what downtown can be, and to celebrate the beauty of San Francisco,” said Andrew Robinson, the executive director of the East Cut Community Benefit District. Robinson explained that this was the Benefit District’s first time helping to put on the 415 Day celebration. He noted that the event brought in welcome business and foot traffic to the neighborhood.

EMPIRE CEO Ghazi Shami, who is a San Francisco native, was at the event too. Shami explained to NBC Bay Area that the event is a chance to put a spotlight on the creative community in San Francisco.

“I’m a product of my environment, I love San Francisco,” Shami said.

“It’s perfect time to celebrate, like our cultural diversity, music, food, street fashion, all the things that make San Francisco unique,” he said.

Shami added that he hopes next year to see even more 415 Day celebrations across San Francisco.

“I hope this becomes something that everybody adopts and celebrates no matter where you’re from,” he said.

The crowds at the event continued to grow throughout the night. People stopped to take photos with a giant, illuminated “415 Day” sign at the plaza.

“Just seeing this community come together, the diversity, the music, the food, we got it all in San Francisco,” said San Francisco Mayor Daniel Lurie, addressing the crowd at the start of the event.

An artist who goes by the name Mando told NBC Bay Area he though the event was “well orchestrated,” he enjoyed the food, drinks, and entertainment.

Mando, who lives in San Francisco, said he thinks 415 Day is an important holiday for the city.

“I think celebrating 415 Day is like a religion, if you’re from the city you basically gotta live it up today, today is the day,” he said.

“The bridge, the city, the everything, the music, the culture, it’s a beautiful thing, today’s the day to just let it all out and not care about nothing,” he continued.

A collision that killed a pedestrian in San Francisco’s South of Market neighborhood is being investigated as a homicide, police said.