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Business Journals
25-04-2025
- Business
- Business Journals
BotBuilt's AI robots cut homebuilding costs, boost efficiency
By submitting your information you are agreeing to our Privacy Policy and User Agreement . A North Carolina builder's partnership with an AI-driven robotics company is reshaping the homebuilding landscape, promising significant savings in both time and costs. Story Highlights BotBuilt uses AI and robots to cut housing construction costs. Capo Construction first utilized BotBuilt's technology in North Carolina. BotBuilt has produced materials for over 35 homes since 2020. Capo Construction was the first builder in North Carolina to utilize BotBuilt, a robotics company that uses artificial intelligence to create precisely cut building materials. 'We wanted to improve the quality and precision of our framing, reduce material waste and speed up the framing process,' said Randy Newcomer, president of Capo Construction, which builds single-family custom and spec homes in and around Moore County. 'We try to keep our homes affordable for [homebuyers], anyone from the professional working family to the retiree who wants to keep some of their money to enjoy golf and not spend it all on their retirement home.' GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events Affordability is the prime objective at BotBuilt, and they're achieving cost reductions through efficiencies in materials as well as labor optimization. 'The bottom line is we're building homes with robots,' explained Brent Wadas, CEO of Durham-based BotBuilt. 'Realistically speaking, we're trying to cut the cost of housing construction [in] half and 10 times the speed through automation systems.' The topic of affordable housing has never been more timely: Last year the cost of goods used in the construction of new residential units hit $204 billion according to the National Association of Home Builders, and $14 billion of that total was for construction materials being imported into the U.S. Focused on the lumber needed to build a home, BotBuilt can take any two-dimensional PDF blueprint plan and turn it into essentially a framing model. 'Every stud, every nail, every piece of sheathing, it's all right there and the AI visualizes it for you,' said Wadas, joking that he likes to call the company's creation of wall panels 'Ikea for homebuilding.' It simplifies the process and eliminates wasted material, he said. 'Rather than over-buying on your lumber or over-buying on your labor, you can frame a whole house in a matter of hours with just a couple of people,' Wadas said. Where it becomes most interesting, in his estimation, is that the company has built custom tools utilizing industrial arm robots. And with AI dictating the robots' choices, they build the framing package with basic stud-grade lumber — so the wood may be bent, bowed, warped, twisted — and is available at the price point consumers need. These are big tools, literally 2,500-pound industrial arms that were formerly in automotive manufacturing. 'We buy them used on eBay; the latest ones that we have are from the BMW plant in Spartanburg, South Carolina,' he said. Robotics that age out of their usefulness in automotive plants can be calibrated to BotBuilt systems and work perfectly with the stud-grade lumber being used. Since starting in 2020, BotBuilt has produced materials for over 35 homes, from North Carolina to Arkansas, including 14 homes for one of the largest private homebuilders in the country. A spokesperson for the builder, which did not want its name published, said they have used BotBuilt's wall panels as well as its pre-cut framing lumber. 'We see using BotBuilt as an advantage in several phases of the construction process. Since they use AI to analyze our plans, they have found areas of our plans that can be improved,' the spokesperson said. 'Additionally, even if we do not use their panels for construction, their AI provides a huge value in fine-tuning our purchasing.' AI was the starting point for BotBuilt and underpins every piece of technology being utilized. 'Our bespoke AI was all built in-house as part of our patent system and it is what builds out the 2D to 3D modeling system,' Wadas said. 'That computer vision is vital because if you've got an eight-foot plank that's bowed seven inches over that eight feet, the robot does a lot of math to understand what will bring it back in and what's going to happen on the opposite end to fix that.' Closer Look Co-founders: Barrett Ames, Colin Devine, Brent Wadas Barrett Ames, Colin Devine, Brent Wadas Address: 3161 Hillsborough Road, Durham 3161 Hillsborough Road, Durham Website: Founded: 2020 2020 Investment to date: $12.4 million $12.4 million Employees: 25 25 Robots in plant: 10 The market demand for construction wall panels is strong and by next year Wadas expects the team will be producing roof trusses as well. BotBuilt has already submitted its patent application for those. 'Rather than wonder how much materials you have to buy for a home, our robots pick and cut exactly what is needed, we know up front, when the first design goes through, how much it will actually cost. We increase the actual knowns and save time in the construction, so it decreases the overall cost of homebuilding,' Wadas said. A major factor in construction costs is the labor needed. Custom homebuilder Newcomer noted that unemployment in the construction industry has been low for some time. 'Most people aren't looking for skilled labor jobs anymore and, while there have been efforts to push trades, we are still facing a labor shortage,' he said. 'A majority of the framing on a home is done by subcontractors who are largely immigrants, and we have more restrictions on labor moving in and out of the country so [neither] labor costs or material costs will be coming down. BotBuilt is addressing both of these areas by speeding up the process, thereby reducing the need for as many workers and the time it takes per house.' The company has over 2,000 homes on back order and has received investments totaling $12.5 million, with a Series A fundraiser underway to bring in another $15 million. Wadas expects to expand the current 'staff' of 10 robots to around 100 robots, although the current headcount of 25 full-time employees won't need to grow much higher because one person can operate five to 10 robots. He's bullish on the opportunity to bring more affordable housing to markets around the country and beyond. Recently he was in Tokyo meeting with 'some of Japan's largest homebuilders' to explore potential investment and collaboration. 'There are also several used robotics distributors here [in Japan] that we want to discuss partnerships with,' he said. Ultimately, Wadas sees potential to franchise BotBuilt. 'We'll be selling the license rights to use our custom software and hardware integrations to component manufacturers and builders throughout the world,' he said. 'This lets them use our systems in their facilities to build faster, safer and with greater precision, without changing the material or the people they work with. About this project: 52 Shades of Success – The Impact of AI explores the challenges and opportunities of individuals and businesses that are trying to leverage the capabilities of artificial intelligence with an eye on combatting bias in its functionality. We'll focus on AI's impact on various areas of business and life.
Yahoo
25-04-2025
- Business
- Yahoo
Tariffs could push up homeowners insurance premiums — and people in these states would see the biggest price hikes
From home builders to homeowners, every corner of the housing market is likely to feel the pinch of tariffs. The Trump administration's worldwide tariffs on imported goods could cost American homeowners an additional $106 in home-insurance premiums this year, according to a new forecast by insurance-comparison startup Insurify. The buying opportunity of a lifetime is coming. But not before a 40% drop for the S&P 500, says this strategist. 'We are shocked and upset': My mother died and her second husband said he now owns everything. Is this true? 10 'pure value' stocks favored by analysts to soar 20% to 96% over the next year S&P 500's rapid exit from correction territory hinged on Trump's walk-backs of tariffs and Fed fight Talk of a Trump pivot on China tariffs is helping stocks — but U.S. companies want actual trade deals Tariffs push up input costs. If fully implemented, the administration's import duties are likely to increase the cost of building materials, which would in turn drive up insurance rates across the U.S. About 7% of construction materials used in building homes are imported from overseas, according to analysis by the National Association of Home Builders, a trade group. Builders already expect the tariffs to add nearly $11,000 in additional costs per home. Read more: When materials cost more, the overall expense of repairing damage caused to a property also increases. Insurance companies will have to pay out more to their policyholders; they are also expected to pass on those costs to their customers in the form of higher premiums, according to the Insurance Information Institute, an industry group. Home-insurance costs have been rising in recent years, regardless of tariffs. Without tariffs, the average homeowner's insurance premium was expected to increase to $3,520 by the end of 2025, up from $3,259 in 2024, according to Insurify. If Trump's tariffs are fully implemented, home-insurance premiums are expected to go up by an additional $106, the company said, to a total average of $3,626 in 2025. The highest increases, based on existing projections for each state, would be felt by homeowners in Florida. People who own property in the state could see an additional increase in premiums of up to $464 due to the tariffs, Insurify said. Similarly, Louisiana homeowners could see an increase of $418 in homeowners insurance premiums because of the tariffs, which is also on the higher end. The lowest increase in premiums would be felt by homeowners in Vermont. The state was already the lowest in terms of average homeowners insurance costs and would see a lower tariff-induced increase of $37, Insurify said. Insurance premiums affect homeowners, of course, but prospective home buyers should also keep an eye on insurance costs as they hunt for a house. Personal-finance experts advise that home buyers factor in insurance and other so-called phantom costs when they're budgeting for a property purchase. Phantom costs include property taxes, utilities and maintenance costs; many of these ongoing costs of homeownership have been rising in recent years. Read more: House hunters are also seeing the impact of tariffs in the form of volatile mortgage rates. Rates are bouncing around as the financial markets try to assess the state of the U.S. economy, the possibility of a recession and whether the Federal Reserve will ease monetary policy. The 30-year fixed-rate mortgage rose 11 basis points on Monday to 6.98%, according to Mortgage News Daily. The jump higher came right on the heels of the 30-year rate falling 21 basis points between April 14 and April 16. To be sure, it's not just tariffs that could drive up homeowners insurance premiums overall, Holden Lewis, home and mortgage expert at personal-finance site NerdWallet, told MarketWatch. 'Higher tariffs and duties might exert a small increase in prices for lumber and appliances … [and] these higher costs might drive home-insurance premiums a bit higher,' Lewis said. But 'the bulk of the rise in insurance premiums comes from the effect of fiercer storms driven by climate change,' he added. Homeowners who live in areas exposed to climate risks pay higher premiums than those in lower-risk areas, a Treasury Department study released earlier this year found. What personal-finance issues would you like to see covered in MarketWatch? We would like to hear from readers about their financial decisions and money-related questions. You can fill out or write to us at . A reporter may be in touch to learn more. MarketWatch will not attribute your answers to you by name without your permission. 'I am suspicious': My father died, leaving me $250,000. My brother says it's all gone. What can I do? I held power of attorney for my late brother. Can I withdraw money from his bank account to give to his favorite charity? Wednesday's relief rally suggests the 'Sell America' trade is on pause. But is the worst really over? 'I have an out-of-state adviser in a Republican state': How can I tell if his political views influence his investment advice? My husband will inherit $180K. I think we should invest the money. He wants to pay off his $168K mortgage. Who's right? Sign in to access your portfolio
Epoch Times
23-04-2025
- Business
- Epoch Times
New Home Sales at 6-Month High
Sales of new single-family houses in March 2025 were at a seasonally adjusted annual rate of 724,000, a six-month high, according to The sales number was higher than the latest estimate in The sales increase follows mortgage rates ticking down in March. After spiking at 7.04 percent in January, 30-year fixed rates had come down steadily to 6.65 percent by the end of March, according to The rate has since gone up, and was at 6.83 percent, for the week ending April 17. 'The March new home sales data shows that demand continues to be present in the market, provided affordability conditions permit a purchase,' Buddy Hughes, chairman of the National Association of Home Builders (NAHB), said in an April 23 Census figures put the median sales price of new houses sold in March 2025 at $403,600, 1.9 percent lower than February's price, and 7.5 percent lower than in 2024. The average sales price in March 2025 was $497,700. Related Stories 4/19/2025 4/23/2025 'Lower mortgage interest rates helped boost the pace of new home sales in March,' said NAHB Chief Economist Robert Dietz. A new home sale is recorded when a sales contract is signed or a deposit is accepted. The house does not need to be built for the sale to be recorded. Out of the 724,000 homes sold last month, 28,000 were sold in the Northeast, 69,000 in the Midwest, 144,000 in the West, and 483,000 in the South. Home sales declined by 22.2 percent in the Northeast while increasing by 13.6 percent in the South. Canada Dumping Lumber Housing construction costs are dependent on key input prices, especially for lumber. Lumber There is concern about tariff-related increases, but it hasn't yet affected prices. President Donald Trump had exempted Canada from the global tariffs he imposed on countries earlier this month. Canada is a major supplier of lumber and wood products to the United States, accounting for a major share of the imports. Trump addressed the issue in a statement last month. 'The wood products industry, composed of timber, lumber, and their derivative products (such as paper products, furniture, and cabinetry) is a critical manufacturing industry essential to the national security, economic strength, and industrial resilience of the United States,' Trump said in a March 1 'This industry plays a vital role in key downstream civilian industries, including construction. 'The United States faces significant vulnerabilities in the wood supply chain from imported timber, lumber, and their derivative products being dumped onto the United States market.' He said the United States remains a net importer even as the country's lumber industry has the practical production capacity to supply 95 percent of market demand. Trump ordered the Department of Commerce to investigate the effects on national security of imports of timber, lumber, and their derivative products. On March 4, the Commerce Department issued a The final results are set to be announced later this year along with corresponding duty rates. Dumping margins refer to artificial price deflations that a country, in this case Canada, imposes on products such as lumber when exporting to the United States. The price reductions primarily work to undercut domestic producers.
Yahoo
23-04-2025
- Business
- Yahoo
More than 90M US households can't buy a $400K home. What this means, and how you can work toward buying a home
Buying a home has traditionally been one of the clearest markers of financial stability, but for a staggering 94 million households, even that basic milestone is slipping out of reach. New data reveals that an astonishing number of American households simply cannot afford the median home price, which now hovers around $400,000 in 2025 — highlighting an affordability crisis that's gripping the nation. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how So what does this stark statistic really say about the state of our economy, and how can potential homebuyers realistically enter an increasingly inaccessible market? The National Association of Home Builders' (NAHB) recent affordability pyramid analysis found 94 million households in the U.S. — roughly 70% of all households — can't afford to purchase a home priced at $400,000. This means the majority of the population finds itself priced out of even a "typical" home. 'As home prices increase, fewer and fewer households can afford the next price level, with the highest-priced homes — those over $2 million — having the smallest number of potential buyers,' said Na Zhao, a principal economist at NAHB. 'Housing affordability remains a critical challenge for households with income at the lower end of the spectrum.' But let's dive deeper: to comfortably afford a $400,000 home, a household typically needs an annual income of about $110,000, assuming a standard mortgage interest rate around 6% and a down payment of 10%. Even homes priced significantly lower, around the $200,000 mark, require a household income of roughly $61,000. Yet about 53 million households in America still don't meet this modest income requirement. For those who want their own home, the American dream is morphing into a nightmare of perpetual renting and financial instability for tens of millions of citizens. Read more: The US stock market's 'fear gauge' has exploded — but this 1 'shockproof' asset is up 14% and helping American retirees stay calm. Here's how to own it ASAP Homeownership, traditionally the primary wealth-building vehicle for American families, is becoming an exclusive club, accessible only to higher-income households. Skyrocketing home prices driven by severe inventory shortages and sustained high demand have left average families scrambling to find housing they can afford. Moreover, higher mortgage rates compound the affordability challenge, adding hundreds of dollars to monthly payments. This situation perpetuates cycles of economic inequality: the wealthy gain equity and stability, while others struggle with escalating rent and financial insecurity. With millions unable to achieve homeownership, long-term financial stability becomes a distant dream, undermining retirement savings, wealth accumulation and generational financial security. Despite these grim statistics, buying a home isn't impossible — it just requires discipline, strategy and realistic expectations. Here are three steps potential homebuyers can take today. Step one to homeownership begins with a disciplined budget. Know exactly where every dollar goes each month. Reducing unnecessary spending frees up money you can redirect toward savings. Track spending, cut subscriptions you rarely use and eliminate impulse buys. Even small savings can significantly impact your financial readiness over time. A common misconception is that buyers need a hefty 20% down payment. While this amount helps avoid private mortgage insurance (PMI), it isn't a necessity. Federal Housing Administration (FHA) loans allow for down payments as low as 3.5%, and conventional mortgages can be secured with as little as 5%. Determine how much home you can afford, calculate your down payment and start setting aside those funds diligently. Remember, lower down payments will increase your monthly costs slightly due to PMI, but getting into the market sooner might outweigh the extra expense. National averages don't always tell the whole story, as prices vary widely by location. Research and understand your local housing market dynamics. Online platforms and local realtors can help gauge the realistic cost of homes in your desired area. Knowing local prices helps set achievable targets for saving and borrowing. Moreover, consider locations slightly outside major metropolitan areas. Suburbs and smaller towns often provide more affordable options, allowing you to gain equity and financial footing, even if it means a longer commute or lifestyle adjustments. The housing affordability crisis won't vanish overnight. Addressing this issue demands collective effort — from policy changes that boost affordable housing development to individual financial literacy improvements. By taking practical and informed steps, would-be buyers can reclaim a piece of the American dream, despite the odds. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
22-04-2025
- Business
- Yahoo
The Price of Nails Used in Homebuilding Is Getting Hammered by Tariffs
A box of coil roofing nails currently runs about $64.99 for contractors, but that price might not hold for long. Prices are poised to skyrocket due to a complex interplay of paused and active tariffs, pushing the cost of a single box to around $325. The spike comes at a crucial moment in the real estate cycle—just as homeowners and builders brace for the broader effects of newly imposed and pending reciprocal tariffs across the construction industry. While nails might seem like a small line item in the cost of a home build or repair, the ripple effects can be far-reaching. Nearly every component of a roofing system, for example, could be affected—nails, underlayment, asphalt products, and metal flashing—placing additional financial strain on both contractors and consumers. Nails have fallen through the cracks of the pause on reciprocal tariffs due to a stack of overlapping trade policies that have sharply increased the cost of imported steel, according to the Cato Institute. First, there's the longstanding 25% tariff on Chinese steel products, imposed under Section 301, which has been baked into pricing since 2018. In February 2025, a new 10% tariff on most Chinese goods was announced, layered on top of the existing steel tariffs. Then came a sweeping change: a new 25% tariff under Section 232, effective March 12, 2025, which eliminated previous exemptions and applied to all countries, including longtime U.S. trade partners. 'All material in transit will be subject to these most recent changes. … This is not a new tariff, but it removes all exemptions,' reads a February press release from Continental Materials Inc., one of the largest suppliers of nails in the U.S. While the U.S. temporarily paused new tariffs on goods from Mexico and Canada, the steel nails are not exempt from the Section 232 expansion—leaving contractors with few options and increasing reliance on affected imports. And the issue doesn't stop at nails. 'The United States has largely outsourced metal manufacturing, so we depend highly on imports,' says Colorado-based contractor . 'This affects everything from nails and fasteners to metal plates and multiboots. The impact reaches across the entire roofing system.' For contractors, the concern isn't just about price—it's also about timing, planning, and transparency. With the real cost of tariffs still working its way through the supply chain, many are in wait-and-see mode. Tariff-related material costs are expected to add around $10,900 to the price of a typical new home this year, according to the National Association of Home Builders. Steel fasteners, underlayment, and roofing adhesives are among the many products caught in the surge. The Associated General Contractors of America warns that contractors are rethinking how they price and plan projects, increasingly relying on price escalation clauses, adjusting contract timelines, or stockpiling materials in anticipation of further cost hikes. Higher interest rates and slowing home starts are already stretching margins thin. Now, added uncertainty around materials is forcing contractors to have difficult conversations with clients about cost expectations. 'We're taking a proactive approach,' Hock says. 'We're communicating with distributors and advising clients to move forward with major construction projects sooner rather than later.' While material prices haven't peaked yet, industry leaders say the writing is on the wall. With few significant domestic metal manufacturing bases and multiple layers of tariffs now in play, the construction industry is vulnerable to future price shocks on virtually every metal-based product. 'We're staying vigilant to provide our customers with the best value and service despite these challenging market conditions,' says Hock. From a $65 box of nails to entire roofing systems, trade policy is tightening the screws on contractors—and the cost could be passed down to homeowners. With ripple effects touching everything from home improvement projects to new builds, the message is clear: Tariffs don't just live in Washington, they land on the roof. After a Difficult Decade, Puerto Rico's Luxury Home Market Is Having a Moment. And It's Just Getting Started. Younger Buyers Are Turning to Home Auctions. Here's Why. Helen Hunt Asks $14.995 Million for Spanish-Style Los Angeles Home
