When it comes to elevating livelihoods, a CSU degree is tops in California, study says
Marco Florez knows the value of his California State University education because it changed his family's trajectory.
His mother, Suehey Florez, immigrated to the U.S. from Mexico "not knowing a lick of English," he said, but was able to attend Fresno State, where she earned bachelor's and master's degrees. She is now is a special education teacher for the Tulare County Office of Education.
"One of the biggest things that transformed her life was getting that education," Florez said.
For Florez, 22, Fresno State was an easy choice because it is "really, really affordable," and it sets up immigrant and second-generation students for success, he said. Florez will graduate debt-free this year because of a Reserve Officers' Training Corps scholarship he received from the U.S. Army.
"A lot of people like to think of Fresno State as a stepping stone," he said. "But I think of it as a skyrocket."
The Florez family's experience exemplifies the findings of a new study that looks at an increasingly important metric in higher education: economic mobility. The California Mobility Index, created by the HEA Group and College Futures Foundation, ranks four-year California colleges based on how much low- and moderate-income students — those whose annual household income is $75,000 or less — have improved their socioeconomic standing.
No. 1? Cal State L.A.
Fresno State, meanwhile, is No. 5 on the list of 82 schools, which was released Thursday.
What's more, nine out of the top 10 colleges in the ranking, which takes into account educational costs and former students' earnings a decade after enrollment, are CSU campuses.
That strong showing is a sign of the system's commitment to upward social and economic mobility at a time when many are questioning the value of a college education, said Berenecea Johnson Eanes, president of Cal State L.A. The institutions topping the list, she said, are "intentional about social mobility and the impact they have on the community."
Social mobility — sometimes referred to as economic mobility — is the movement of people between classes. A college education is widely seen as a key to an upward socioeconomic trajectory.
Indeed, nearly all of the top 50 schools on the CMI boosted the earnings of their low- and moderate-income students by at least $20,000 over what someone with only a high school degree would make. HEA's analysis uses tax records from the Treasury Department to measure the earnings of former students 10 years after their enrollment.
Student debt can be a major roadblock. The CMI, which was created using U.S. Department of Education data, takes this into account, measuring the cost of education after scholarships and grants are deducted.
This is part of the reason why the top 15 colleges on the CMI are all less costly CSU campuses, save for UC Merced at No. 10 and UC Irvine at No. 12. UC Berkeley placed 24th and UCLA was 27th. Those institutions cost low- and moderate-income students less than almost every private school on the list.
Michael Itzkowitz, founder and president of HEA Group, a research and consulting company focused on college value, said that schools atop the CMI "are effective in bringing in a broad group of students, lifting them up the socioeconomic ladder and leaving them better off than the previous generation."
All of the institutions in the CMI's top 15 had a net cost of less than $45,000 for four years of education. Private colleges were found to be much more expensive for low- and moderate-income attendees. At No. 44 USC, the four-year net price was about $62,000; at No. 59 Pepperdine it was about $131,000, according to the study.
In part because of higher costs, schools on the lower half of the list were almost entirely private ones where it took longer for students to recoup the total costs of their education. In contrast, the CMI shows that students of the top-performing CSU schools quickly recover the costs.
Consider Cal State L.A. Data from the list shows that it takes former low- and moderate-income students from the school, on average, less than nine months to recoup their educational costs. The typical price of a four-year undergraduate education for those students is a little more than $18,000, after scholarships and grants are deducted. And, 10 years after enrollment, former students from those income levels had median annual earnings of a little more than $59,000.
Unlike many other college rankings, the CMI does not consider standardized test scores or prestige — factors that might boost private schools.
"I think there is a real angst and concern among all Americans about the cost of higher education," said Eloy Ortiz Oakley, president of College Futures Foundation, which commissioned the CMI. "That is a real thing that policymakers and higher education leaders are going to have to contend with, and our hope is that presenting data like this will help drive that conversation."
The CSU is the country's largest four-year public higher education system, with 23 campuses that graduate about 125,000 students annually.
The system is roiled by financial stress: It faces a $375-million funding cut in Gov. Gavin Newsom's proposed 2025-26 budget. Cuts of that size would have "heartbreaking' consequences, CSU Chancellor Mildred García said in January.
Read more: CSU, reeling from budget cuts to classes and faculty, decries more proposed state reductions
Oakley, a former California Community Colleges chancellor and University of California regent, acknowledged the CSU system faces challenges, but said its strong showing in the CMI indicated that "investments that California has made in the Cal State University have been paying off."
"We can see that the CSU has been carrying the the largest load in terms of percentage of low-income learners and helping them get into the workforce, and doing it in a way that helps them recover the cost of their education," he said.
Erin Pruitt, a graduate student at Cal State Bakersfield — No. 4 on the CMI — is counting on that being true.
Born and raised in Bakersfield, she got her bachelor's degree from the university in 2023 and began working toward her master's in business administration later that year. Multiple scholarships have helped defray the cost of her education: Pruitt, who is scheduled to graduate with her MBA in the summer, has about $21,000 in student debt. According to the research group Education Data Initiative, the average debt for an MBA graduate is about $81,000.
Pruitt, 24, said that she is pursuing some public relations jobs outside Kern County, where "salaries are significantly higher." That, coupled with the relatively low cost of her education, has positioned her for success, she said.
"It puts me on a pathway to pay off my [student] debt, if I want to, within the first year, which is huge," said Pruitt, Cal State Bakersfield's student body president.
The schools atop the CMI, among them Cal State Bakersfield, don't merely provide an "extremely affordable education" to low- and moderate-income students, Itzkowitz said. "They're also allowing them to enter the workforce and succeed economically within just a few years."
College rankings are big business. One survey has shown that nearly 60% of high school seniors bound for college consider them, and a drop in position on one of the prominent lists can be costly, due to a decline in applications.
But rankings aren't all the same. Alongside questions about the value of higher education are ones that probe the value of the lists.
Oakley said that mainstream college rankings have been "extremely damaging."
"They've created this perception that individuals that graduate from the most selective, wealthiest institutions ... have a leg up on everybody else," he said. "And so there's this arms race to be more selective, more wealthy. What it does to ... the rest of Americans that go to anything from community colleges to four-year regionals to public [schools] like the UC, it skews the perception of those institutions. And so the whole ranking system is upside down."
Although the CMI may take a different approach, other rankings also look at social mobility: U.S. News & World Report has had one since 2018 and puts out a national list and others by region.
For example, on the publication's current list, Cal State L.A. tied for No. 5 on its social mobility ranking of universities in the West. But that analysis is focused on two factors related to Pell Grants and does not take into account economic data such as earnings.
In contrast, Itzkowitz said, the CMI highlights "institutions that not only provide a strong return on investment for low- and moderate-income students, but also enroll a large proportion of them."
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This story originally appeared in Los Angeles Times.

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Yahoo
2 hours ago
- Yahoo
Housing starts for May 2025
OTTAWA, ON, June 16, 2025 /CNW/ - The six-month trend in housing starts was flat (0.8%) in May (243,407 units), according to Canada Mortgage and Housing Corporation (CMHC). The trend measure is a six-month moving average of the seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada. The total monthly SAAR of housing starts for all areas in Canada was also flat (-0.2%) in May (279,510 units) compared to April (280,181 units). Actual housing starts were up 9% year-over-year in centres with a population of 10,000 or greater, with 23,745 units recorded in May, compared to 21,814 units in May 2024. The year-to-date total was 90,767 up 1% from the same period in 2024. "Growth in actual starts activity in May was once again driven by increases of single-detached homes and purpose-built rentals in Québec and the Prairie provinces. By contrast, weak condominium market conditions in Toronto and Vancouver have contributed to significant declines in overall housing starts in these regions, in line with our recent analysis on these markets,'' said Tania Bourassa-Ochoa, CMHC's Deputy Chief Economist. Key Facts: New housing starts revisions data: In Q3 2024, revisions totaled a net positive 87 units on an original total housing starts of 58,439 units. In Q4 2024, housing starts revisions totaled a net positive 17 units on an original total housing starts of 58,934 units. Housing starts revisions cover all urban centres of 10,000 population or more, reported at the Census Subdivision level on a quarterly basis. The monthly SAAR for Canada's centres with a population of 10,000 or greater was flat in May (259,804 units) compared to April (259,916 units). The rural starts monthly SAAR estimate was 19,706 units. Among Canada's big three cities, Montreal posted an 11% year-over-year increase in actual housing starts compared to May 2024, driven by more multi-unit starts. Vancouver recorded a 10% decrease in starts this month, driven primarily by lower multi-unit starts. A decrease in multi-unit starts also drove the 22% year-over-year decrease in Toronto's housing starts compared to May 2024. Monthly Housing Starts and Other Construction Data are accessible in English and French on our website and the CMHC Housing Market Information Portal. Housing starts data is available on the eleventh business day each month. We will release the June housing starts data on July 15 at 8:15 AM ET. CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and to obtain a clearer picture of upcoming new housing supply. In some situations, analyzing only SAAR data can be misleading, as the multi-unit segment largely drives the market and can vary significantly from one month to the next. Read about our definitions and methodology to better understand the foundations of the Starts and Completions and Market Absorption surveys. Housing starts facilitate the analysis of monthly, quarterly, and year-over-year activity in the new home market. The data we collect as part of our Starts and Completions and Market Absorption surveys helps us obtain a clearer picture of upcoming new housing supply and is used as part of our various housing reports. CMHC plays a critical role as a national convenor to promote stability and sustainability in Canada's housing finance system. Our mortgage insurance products support access to home ownership and the creation and maintenance of rental supply. We actively support the Government of Canada in delivering on its commitment to make housing more affordable. Our research and data help inform housing policy. By facilitating cooperation between all levels of government, private and non-profit sectors, we contribute to advancing housing affordability, equity, and climate compatibility. Follow us on X (formerly Twitter), YouTube, LinkedIn, Facebook and Instagram. Related Links: Housing starts for April 2025 2025 Housing Market Outlook Condominium Apartment Market Risks in Toronto and Vancouver Solving the housing crisis is a marathon not a sprint High housing costs making it harder to move for jobs many are seeking Canada's potential capacity for housing construction Table 2 Housing Start Data in Centres 10,000 Population and OverJanuary - May 2024 - 2025 AreaSingle-Detached All Others Total Province 2024 2025 % 2024 2025 % 2024 2025 % N.L.158 195 23 67 139 107 225 334 48 P.E.I. 66 97 47 414 393 -5 480 490 2 N.S. 514 427 -17 2,685 2,752 2 3,199 3,179 -1 N.B. 220 209 -5 1,262 1,167 -8 1,482 1,376 -7 Atlantic958 928 -3 4,428 4,451 1 5,386 5,379 0 Que. 1,520 1,639 8 12,664 19,633 55 14,184 21,272 50 Ont. 4,358 3,308 -24 26,332 18,524 -30 30,690 21,832 -29 Man. 613 883 44 1,241 1,641 32 1,854 2,524 36 Sask. 370 639 73 775 1,750 126 1,145 2,389 109 Alta. 5,363 6,376 19 12,355 16,136 31 17,718 22,512 27 Prairies6,346 7,898 24 14,371 19,527 36 20,717 27,425 32 B.C. 1,630 1,433 -12 17,314 13,426 -22 18,944 14,859 -22 Canada14,812 15,206 3 75,109 75,561 1 89,921 90,767 1 Metropolitan AreasAbbotsford-Mission 71 58 -18 442 902 104 513 960 87 Barrie164 45 -73 89 121 36 253 166 -34 Belleville - Quinte West68 43 -37 83 165 99 151 208 38 Brantford87 104 20 13 933 ## 100 1,037 ## Calgary2,624 2,969 13 6,588 9,443 43 9,212 12,412 35 Chilliwack58 54 -7 156 241 54 214 295 38 Drummondville55 91 65 176 337 91 231 428 85 Edmonton2,221 2,798 26 4,752 5,381 13 6,973 8,179 17 Fredericton63 46 -27 71 234 230 134 280 109 Greater/Grand Sudbury38 15 -61 24 74 208 62 89 44 Guelph18 8 -56 134 25 -81 152 33 -78 Halifax276 266 -4 2,455 2,555 4 2,731 2,821 3 Hamilton128 74 -42 882 691 -22 1,010 765 -24 Kamloops54 46 -15 104 110 6 158 156 -1 Kelowna118 105 -11 1,986 1,047 -47 2,104 1,152 -45 Kingston65 62 -5 59 218 269 124 280 126 Kitchener-Cambridge-Waterloo167 116 -31 889 1,055 19 1,056 1,171 11 Lethbridge89 124 39 168 180 7 257 304 18 London187 169 -10 1,328 251 -81 1,515 420 -72 Moncton64 66 3 797 809 2 861 875 2 Montréal397 468 18 6,014 9,495 58 6,411 9,963 55 Nanaimo66 33 -50 566 123 -78 632 156 -75 Oshawa190 105 -45 622 146 -77 812 251 -69 Ottawa-Gatineau 600 635 6 3,080 4,604 49 3,680 5,239 42 Gatineau129 97 -25 1,246 1,015 -19 1,375 1,112 -19 Ottawa471 538 14 1,834 3,589 96 2,305 4,127 79 Peterborough36 22 -39 16 3 -81 52 25 -52 Québec203 286 41 2,556 3,924 54 2,759 4,210 53 Red Deer27 48 78 242 197 -19 269 245 -9 Regina74 131 77 467 721 54 541 852 57 Saguenay87 84 -3 88 201 128 175 285 63 St. Catharines-Niagara328 160 -51 484 468 -3 812 628 -23 Saint John48 54 13 244 77 -68 292 131 -55 St. John's132 183 39 61 135 121 193 318 65 Saskatoon269 471 75 304 968 218 573 1,439 151 Sherbrooke106 91 -14 373 435 17 479 526 10 Thunder Bay14 14 - 32 31 -3 46 45 -2 Toronto1,465 1,105 -25 18,217 9,769 -46 19,682 10,874 -45 Trois-Rivières54 71 31 406 539 33 460 610 33 Vancouver757 754 0 11,754 8,938 -24 12,511 9,692 -23 Victoria121 83 -31 1,451 1,296 -11 1,572 1,379 -12 Windsor105 108 3 597 139 -77 702 247 -65 Winnipeg520 794 53 1,171 1,481 26 1,691 2,275 35 Total12,214 12,959 6 69,941 68,462 -2 82,155 81,421 -1 1Data for 2022 based on 2016 Census Definitions and data for 2023, 2024 and 2025 based on 2021 Census CMHC Starts and Completion Survey, Market Absorption SurveyHousing Start Data in Centres 10,000 Population and Over Single-Detached All Others Total May 2024 May 2025 % May 2024 May 2025 % May 2024 May 2025 % Provinces (10,000+)N.-L. 52 68 31 14 33 136 66 101 53 P.E.I. 34 30 -12 100 8 -92 134 38 -72 N.S. 116 103 -11 546 580 6 662 683 3 N.B. 104 92 -12 534 439 -18 638 531 -17 Atlantic 306 293 -4 1,194 1,060 -11 1,500 1,353 -10 Qc 470 478 2 4,328 6,244 44 4,798 6,722 40 Ont. 1,165 901 -23 6,091 4,816 -21 7,256 5,717 -21 Man. 134 193 44 94 512 445 228 705 ## Sask. 113 185 64 39 280 ## 152 465 ## Alta. 1,328 1,503 13 2,820 4,260 51 4,148 5,763 39 Prairies 1,575 1,881 19 2,953 5,052 71 4,528 6,933 53 B.C. 396 336 -15 3,336 2,684 -20 3,732 3,020 -19 Canada (10,000+) 3,912 3,889 -1 17,902 19,856 11 21,814 23,745 9 Metropolitan AreasAbbotsford-Mission 16 18 13 125 45 -64 141 63 -55 Barrie 27 24 -11 60 23 -62 87 47 -46 Belleville - Quinte West 18 11 -39 4 0 ### 22 11 -50 Brantford 26 16 -38 0 353 ## 26 369 ## Calgary 617 641 4 1,379 2,398 74 1,996 3,039 52 Chilliwack 13 16 23 13 4 -69 26 20 -23 Drummondville 13 19 46 61 83 36 74 102 38 Edmonton 577 706 22 1,253 1,517 21 1,830 2,223 21 Fredericton 32 21 -34 64 109 70 96 130 35 Greater/Grand Sudbury ... 6 7 17 22 69 214 28 76 ## Guelph 8 1 -88 0 18 ## 8 19 ## Halifax 60 56 -7 466 488 5 526 544 3 Hamilton 21 19 -10 429 66 -85 450 85 -81 Kamloops 21 5 -76 87 4 -95 108 9 -92 Kelowna 32 33 3 1,020 379 -63 1,052 412 -61 Kingston 10 15 50 20 2 -90 30 17 -43 Kitchener-Cambridge-Waterloo 37 20 -46 30 37 23 67 57 -15 Lethbridge 39 42 8 19 38 100 58 80 38 London 58 27 -53 99 26 -74 157 53 -66 Moncton 28 36 29 367 262 -29 395 298 -25 Montréal 143 121 -15 2,259 2,556 13 2,402 2,677 11 Nanaimo 15 4 -73 12 18 50 27 22 -19 Oshawa 87 41 -53 82 44 -46 169 85 -50 Ottawa-Gatineau 194 113 -42 1,344 933 -31 1,538 1,046 -32 Gatineau 44 30 -32 776 389 -50 820 419 -49 Ottawa 150 83 -45 568 544 -4 718 627 -13 Peterborough 7 4 -43 2 0 ### 9 4 -56 Québec 54 93 72 587 1,952 233 641 2,045 ## Red Deer 7 8 14 5 180 ## 12 188 ## Regina 21 32 52 17 28 65 38 60 58 Saguenay 25 26 4 11 50 355 36 76 ## St. Catharines-Niagara 117 60 -49 186 78 -58 303 138 -54 Saint John 23 20 -13 26 50 92 49 70 43 St. John's 43 62 44 11 30 173 54 92 70 Saskatoon 86 145 69 22 249 ## 108 394 ## Sherbrooke 32 21 -34 90 55 -39 122 76 -38 Thunder Bay 11 9 -18 2 11 450 13 20 54 Toronto 290 310 7 4,190 3,202 -24 4,480 3,512 -22 Trois-Rivières 29 21 -28 129 313 143 158 334 ## Vancouver 182 180 -1 1,789 1,593 -11 1,971 1,773 -10 Victoria 28 14 -50 122 362 197 150 376 ## Windsor 31 33 6 86 31 -64 117 64 -45 Winnipeg 106 174 64 81 499 ## 187 673 ## Total 3,190 3,224 1 16,571 18,155 10 19,761 21,379 8 Data for 2022 based on 2016 Census Definitions and data for 2023, 2024 and 2025 based on 2021 Census Definitions. Source: CMHC Starts and Completion Survey, Market Absorption Survey## not calculable / extreme valueHousing Start Data - Seasonally Adjusted at Annual Rates (SAAR)Single-Detached All Others TotalApril 2025 May 2025 % April 2025 May 2025 % April 2025 May 2025 % Provinces (10,000+)N.L. 808 773 -4 703 367 -48 1,511 1,140 -25 P.E.I. 314 230 -27 1,656 96 -94 1,970 326 -83 N.S. 1,435 1,407 -2 10,771 6,916 -36 12,206 8,323 -32 N.B. 811 980 21 1,592 5,031 216 2,403 6,011 150 Qc 4,706 4,538 -4 46,937 56,759 21 51,643 61,297 19 Ont. 10,275 10,066 -2 54,112 56,115 4 64,387 66,181 3 Man. 2,789 2,332 -16 2,712 6,144 127 5,501 8,476 54 Sask. 1,699 1,960 15 5,760 3,360 -42 7,459 5,320 -29 Alta. 18,208 16,575 -9 43,503 50,511 16 61,711 67,086 9 B.C. 3,595 3,657 2 47,530 31,987 -33 51,125 35,644 -30 Canada (10,000+) 44,640 42,518 -5 215,276 217,286 1 259,916 259,804 0 Canada (All Areas) 58,609 55,161 -6 221,572 224,350 1 280,181 279,510 0 Metropolitan Areas Abbotsford-Mission 51 138 ## 2,424 540 -78 2,475 678 -73 Barrie 47 269 ## 408 276 -32 455 545 20 Belleville - Quinte West 157 97 -38 0 0 - 157 97 -38 Brantford 384 0 ## 3,228 4,236 31 3,612 4,236 17 Calgary 9,215 7,185 -22 27,372 28,776 5 36,587 35,961 -2 Chilliwack 70 181 ## 70 48 -31 1,522 229 -85 Drummondville 261 210 -20 684 996 46 945 1,206 28 Edmonton 7,275 7,385 2 15,084 18,204 21 22,359 25,589 14 Fredericton 221 242 10 0 1,308 ## 221 1,550 ## Greater/Grand Sudbury 56 87 55 0 828 ## 56 915 ## Guelph 51 2 -96 72 216 200 123 218 77 Halifax 698 797 14 10,320 5,856 -43 11,018 6,653 -40 Hamilton 359 217 -40 2,148 792 -63 2,507 1,009 -60 Kamloops 55 46 -16 48 48 - 103 94 -9 Kelowna 232 366 58 2,124 4,548 114 2,356 4,914 109 Kingston 233 226 -3 396 24 -94 629 250 -60 Kitchener-Cambridge-Waterloo 343 238 -31 2,748 444 -84 3,091 682 -78 Lethbridge 280 496 77 240 456 90 520 952 83 London 646 276 -57 360 312 -13 1,006 588 -42 Moncton 229 290 27 1,512 3,144 108 1,741 3,434 97 Montréal 1,311 1,241 -5 21,593 30,375 41 22,904 31,616 38 Nanaimo 84 41 -51 216 216 - 300 257 -14 Oshawa 387 356 -8 420 528 26 807 884 10 Ottawa-Gatineau 2,117 1,155 -45 16,968 11,196 -34 19,085 12,351 -35 Gatineau 369 341 -8 1,476 4,668 216 1,845 5,009 171 Ottawa 1,748 814 -53 15,492 6,528 -58 17,240 7,342 -57 Peterborough 15 74 ## 0 0 - 15 74 393 Québec 659 952 44 7,452 23,424 214 8,111 24,376 201 Red Deer 147 95 -35 0 2,160 ## 147 2,255 ## Regina 278 390 40 3,144 336 -89 3,422 726 -79 Saguenay 284 249 -12 156 600 285 440 849 93 St. Catharines-Niagara 286 407 42 672 936 39 958 1,343 40 Saint John 168 196 17 12 600 ## 180 796 342 St. John's 721 663 -8 648 360 -44 1,369 1,023 -25 Saskatoon 1,231 1,462 19 2,580 2,988 16 3,811 4,450 17 Sherbrooke 357 225 -37 1,944 660 -66 2,301 885 -62 Thunder Bay 108 108 - 0 132 ## 108 240 122 Toronto 3,565 4,478 26 24,492 38,424 57 28,057 42,902 53 Trois-Rivières 188 141 -25 804 3,756 367 992 3,897 293 Vancouver 1,838 1,978 8 34,968 19,116 -45 36,806 21,094 -43 Victoria 211 170 -19 4,452 4,344 -2 4,663 4,514 -3 Windsor 352 404 15 420 372 -11 772 776 1 Winnipeg 2,527 2,026 -20 2,388 5,988 151 4,915 8,014 63 Data for 2022 based on 2016 Census Definitions and data for 2023, 2024 and 2025 based on 2021 Census Definitions. Source: CMHC Starts and Completion Survey, Market Absorption Survey## not calculable / extreme value SOURCE Canada Mortgage and Housing Corporation (CMHC) View original content to download multimedia:

Business Insider
5 hours ago
- Business Insider
AI coding tools upend the 'buy versus build' software equation and threaten the SaaS business model
The enterprise software landscape is being quietly, yet profoundly, disrupted by the rise of AI coding tools such as Bolt, Replit, and Cursor. These services are upending one of the most fundamental technology decisions companies make: whether to buy software from external SaaS vendors or build it in-house. This once-clear distinction is blurring as AI lowers the barrier to building custom software. I grasped the magnitude of this shift at a hackathon party in San Francisco. There, I met Netlify CEO Mathias Biilmann and the startup's security chief Mark Dorsi. They showed me a live Slack feed where new apps were being deployed on Netlify's platform, roughly one every 10 seconds. Many of these were created using Bolt and similar AI coding services. And most were internal tools built by companies for their own use. This is a sea change. Historically, the decision to buy SaaS products stemmed from the high cost and complexity of building software internally. Skilled developers are expensive and internal IT teams are often stretched thin. But with AI-assisted software development, the economics shift. Tools like Bolt empower a new class of developer — what Biilmann calls "AI-native developers" and what Bolt calls "software composers." These are non-traditional developers, often from business or operations roles, who can now build apps using AI to generate functional code through English language prompts. Training these new builders takes weeks or months, not years of expensive computer-science study. As a result, there will likely be a huge influx of new developers. This new supply means businesses can hire more coders for less money. That, in turn, will help companies tackle software projects that previously wouldn't have made the cut. "That's where the build-versus-buy equation starts changing," Biilmann told me. "When you have millions of new people who can build software, the barrier goes down. What a single internal developer can build inside a company increases dramatically. It's a much more radical change to the whole ecosystem than people think." Where this shift will happen first More than 10,000 new websites are being created via new AI coding tools and launched each day on Netlify's platform (versus being coded only by human developers), he noted. Biilman sees the build-versus-buy shift happening in these software areas first: HR, Training, Q&A: These are often pretty simple applications that read and write data and do visualizations. Revenue Operations, CPQ, Business Dashboards: AI coding tools and agents can easily build interfaces or visualizations on top of existing company data. Marketing tools: These are relatively simple from a software perspective and they often need to be highly customized to specific company needs. What if AI agents write these applications? "There are so many other areas that will be impacted by this, that it's daunting to think through the full implications," Biilmann added. "But these are some of the easy, low-hanging areas." Who's building what Netlify used AI coding tools to build an internal employee survey tool, a task typically outsourced to SaaS providers such as Qualtrics or Momentive. Another example: a revenue operations staffer at Netlify used Bolt to create a pricing calculator for enterprise deals, potentially replacing a category of SaaS known as CPQ (Configure, Price, Quote) software. And a Netlify recruiter built a new in-house Interview Training Course app for hiring managers with an AI coding tool called Lovable, instead of buying from an external provider. Even VCs are embracing this trend by actually doing some of the work themselves. Martin Casado, a general partner at Andreessen Horowitz, recently built his own AI-powered customer-relationship-management tool. CRM software is the core offering of tech giant Salesforce. "For some software, it's becoming quicker to code my own version with AI than learn someone else's non-intuitive, shit UI," Casado wrote on X recently. Casado's CRM tool syncs with his calendar and email accounts. It takes that information and queries AI models to plan out each week, researching the people and companies he's due to meet. A note of caution Martín Migoya, CEO of tech consulting firm Globant, has spotted this trend. "We're seeing projects that are coming out that way," he said in a recent interview, noting that some companies are beginning to try to replace unsatisfactory software services with internally-built alternatives. Still, he urged caution. "Creating enterprise-class things is tough," Migoya added. AI models are improving, but software will still require support, the CEO noted. His view reflects a common concern: maintenance and reliability. If something breaks in an AI-coded internal app, who fixes it? This is where infrastructure plays a critical role. To address these concerns, companies like Netlify are developing what Biilmann calls "opinionated platforms" — infrastructure stacks optimized for AI-generated code and agents. These platforms handle authentication, authorization, staging, security, and data access in standardized ways, reducing the operational burden. This evolution could enable companies to move from building prototypes to deploying production-grade software, without hiring an army of senior support engineers, he added. The strategic implications for SaaS The implications for the SaaS industry are significant. If companies can build tailored internal tools for the same cost, or less, than SaaS subscriptions, the traditional SaaS model could be under threat. Per-seat pricing may start to look expensive when compared to more abundant AI-assisted, in-house human coders. Salesforce, the standard bearer of SaaS, could be vulnerable. While their core CRM system of record may remain sticky, some of the custom functionality layered on top might be replicated with AI-coding tools. "Salesforce is really afraid," Biilmann said. "They are not going to be vibe coded away from being the system of record for all your sales data. But it's much more likely that a lot of their own custom functionality on top of that, that they charge extra for today, gets replaced by people building their own custom functionality." Salesforce's answer, so far, is to build and launch its own array of AI agents. This Agentforce business is showing early signs of traction with customers, so this company may be well placed to fend off the threat. Others may not be so lucky. Consulting firm AlixPartners recently warned that more than 100 midmarket software companies are stuck in the middle of this disruptive AI trend. A massive new software layer This new wave of software probably won't replace systems of record, it will sit on top of them. Think internal dashboards, pricing calculators, contract tools, HR survey apps, and media monitoring systems. All these are traditionally handled by SaaS vendors. But as internal developers gain new AI superpowers, building these tools in-house becomes a viable option. AI-assisted software development is tipping the scales in the build-versus-buy debate. While it won't kill off the SaaS industry overnight, it introduces a powerful alternative. Companies that embrace this model may be able to gain more control, reduce costs, and innovate faster. Those that cling solely to traditional SaaS may find themselves paying more for less, while their competitors build the future from within. "You can now become a software developer without writing code," Biilmann said. "That's going to have a ripple effect on everything that's been built."

Business Insider
a day ago
- Business Insider
My father and I work at AT&T together. On our hourlong commutes, he teaches me valuable lessons about life and my career.
This as-told-to essay is based on a conversation with Nicole Wen, 25, who works at AT&T. It has been edited for length and clarity. My dad got a job at AT&T more than 26 years ago. After college, he told me about the company's amazing internship programs. I ended up doing three summer internships there throughout college, so that's how I got my foot in the door with the company. Today, we're both at AT&T. He is in a leadership position within sales, and I am a principal project program manager. When I first started my full-time job about two years ago, I was living in a townhouse super close to my dad's house, so we would carpool together every day for an hour each way. The most time I've ever spent with him was in those car rides, and it was very special because we learned so much about each other. My dad moved to America from Taiwan when he was 14 years old. He had to learn English, went to high school in California, and then to college in New York, where he met my mom. He then started working with a company that eventually became part of the AT&T family. During those car rides, he also shared a lot of life advice with me. The importance of having a good circle The more I got to know my dad, the more I realized he's a pretty cool guy. I learned he has more friends than I do. He's part of several social groups, like a Porsche club and a coffee club. He even writes a newsletter for a car club. You would think I would know everything about him since he is my father, but no, I never knew any of this about my dad. He's just got so much going on outside work. He inspired me to join an employee resource group. We do a lot of charity work and fundraising events. Our main mission is to support high school students and offer college scholarships. My dad started joining the events too, and that's another thing that we do together now. Our favorite event is the Lunar New Year event, and it's very special coming from a mixed-race household. It teaches me a lot more about my culture. We try all the food together, and it's a really nice bonding experience. Never say 'no' to an opportunity My dad always says, "Never say no to an opportunity, big or small." He often explains to me that opportunities don't come around all the time. It's always a chance to learn something new, and being uncomfortable is OK. This advice has helped me a lot in my networking. I never say no, just like he told me. So if I randomly get invited to a happy hour, that's not even on my own team, I still go — even if I'm tired. I've met a lot of people that way. Have multiple areas of expertise My dad also always says you have to have multiple areas of expertise to elevate your career. If you are an expert in one thing, you're going to be known as an expert for that one thing, and you're going to stay there. He says that's something that he wishes he did differently — expand his expertise versus just siloing in one spot. That definitely stuck with me. I now remind myself that it's good to move around. When I now start to feel comfortable, I seek out discomfort. Three months ago, for example, I accepted a new role coming from one in finance. Now, I'm doing chief of staff work, which is all about planning internal events and thinking about our operations. It's under a whole new set of leaders and seeing a side of the business that I haven't even touched on yet. I've gotten very uncomfortable, and it's been so great — thanks to my dad.