From the Ground Up

The episode introduces Netic, a startup leveraging artificial intelligence to transform the home services industry. Netic's AI platform aims to automate client outreach, manage communications, and predict maintenance needs for businesses like plumbing and HVAC services. The company recently secured $20 million in funding to expand its reach beyond white-collar markets and into the skilled trades. The technology optimizes technician deployment and sales by analyzing customer data and prioritizing urgent calls. While AI offers significant efficiency gains, the article emphasizes that human technicians remain essential, with AI acting as a supportive tool rather than a replacement.

The episode examines housing development challenges in Wisconsin, focusing on how planning, zoning, and annexation contribute to these issues. It highlights the need for more housing units across the state and the obstacles developers face, such as rising costs and local resistance to higher-density projects. The article uses the Whitetail Woods development in Altoona as a case study to illustrate the conflicts that arise when cities expand into unincorporated areas, particularly concerning changing zoning regulations and neighborhood opposition. The piece also discusses the role of comprehensive plans and zoning codes, noting that their lack of alignment and enforcement can hinder development, and mentions the push for legislative reform to address these inconsistencies and facilitate housing construction.

Governor Evers' proposed budget for 2025-2027 in Wisconsin outlines a significant increase in state spending compared to the previous budget. Key aspects include a substantial tax reduction alongside increased aid for local governments and new property tax credits. The proposal also introduces a new top income tax bracket and various changes to sales taxes. Several state agencies, including the Department of Safety and Professional Services and the Wisconsin Housing and Economic Development Authority, would see changes in funding and staffing. Notably, the budget contains provisions aimed at encouraging affordable housing development and enhancing consumer protection. The proposal now moves to the legislature for review and is expected to undergo significant revisions.

Rising tariffs, particularly on Canadian lumber, are significantly increasing construction material costs for Wisconsin homebuilders. These tariffs, coupled with existing duties, are projected to add thousands of dollars to the price of a new home. While executive orders aim to boost domestic lumber production, current capacity limitations mean that restricting Canadian imports in the short term will likely hinder housing affordability. Furthermore, the construction industry relies heavily on immigrant labor, and potential mass deportations could exacerbate existing worker shortages, further driving up costs and slowing down building. The National Association of Home Builders advocates for immigration reform and efforts to increase domestic lumber supply to mitigate these negative impacts on the housing market.

In this episode we dive into Wisconsin Act 16, a bill that is slated to make changes to the housing development process.

A significant portion of building materials, such as softwood lumber and gypsum, are imported from Canada and Mexico and are subject to existing or proposed tariffs. These tariffs, which act as taxes, increase the cost of construction, ultimately affecting home buyers and consumers. The NAHB estimates that new tariffs on Canada, Mexico, and China, could increase construction materials by $3 billion to $4 billion, so they are advocating for tariff exemptions on these materials. The NAHB is urging the White House to exempt construction materials from tariffs against Canada and Mexico.