Business
D.R. Horton is tapping a startup’s AI zoning tool to build more homes
D.R. Horton signage stands in front of homes under construction at the Eastridge Woods development in Cottage Grove, Minnesota.
Daniel Acker | Bloomberg | Getty Images
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D.R. Horton, the nation’s largest homebuilder, is tapping an artificial intelligence tool from Portland, Oregon-based startup Prophetic to build more homes and address the country’s housing shortage.
Chronic underbuilding since the Great Recession has caused a deficit of roughly 4 million homes, according to analyses from several sources, including Zillow. The supply-demand imbalance has caused prices to rise over 50% from pre-pandemic levels.
Homebuilders are trying to respond but say that the cost of construction, along with the difficult and costly process for acquiring and developing buildable lots, is making that difficult.
“One of the largest challenges to providing affordable housing is the identification, acquisition and entitlement of land suitable for development. We are confident the insights provided by Prophetic are going to help us expand homeownership opportunities for hard-working American individuals and families,” said Jason Jones, vice president of data analytics at D.R. Horton, in a release.
Prophetic has developed an AI-native platform for land acquisition and development analysis. For any potential parcel of land, Prophetic’s software will pull every single zoning manual from every city and county in a state. The company said it is currently operational in 25 states and expects to be in all 50 by June.
“It’s an incredibly large, tedious, detail-oriented process to take tens of thousands of these zoning documents and extract the rules, not only efficiently, but correctly,” said Oliver Alexander, founder and CEO of Prophetic.
Among other things, the system looks at minimum lot size and minimum or maximum density setbacks, which differ by municipality and zone. It updates those quarterly.
“Then it tells you where that information came from, which is the key differentiator,” Alexander explained. “When you have that section title and the page that it came from, that builds trust, and then it becomes ultra-efficient, where you can analyze development potential in 30 seconds instead of two to three hours.”
Alexander said there are a little over 440,000 different ways to describe what you’re allowed to do on a piece of dirt in the states Prophetic has analyzed. Developers need to go through all of that information to figure out if they can build a single- or multifamily housing development on it.
The AI’s large language model-based analysis of these documents at scale can answer the questions and then feed that into search AI, which Alexander calls “the major unlock” – search plus the zone AI information together. At the ground level, with this AI, builders can figure out what they can build, where and how much at a much faster pace, making them more competitive with landowners.
“If you have that much of an edge in your speed to decision, you effectively control your entire market, because before anyone else can decide, you’ve tied it up,” said Alexander.
Business
Adverts for Booking.com and three major hotel chains banned over misleading prices
Four major players in the travel industry have had their adverts banned by the Advertising Standards Authority (ASA) for misleading customers.
The ASA ruled that Booking.com and hotel groups Accor, Travelodge, and Hilton all used “from” price claims for hotel rooms that overstated how many were available at the advertised rate.
With only a limited proportion of rooms genuinely offered at the advertised prices across various dates, the ASA deemed the promotions misleading and consequently prohibited their future use.
In Booking.com’s case, an ad on May 6 stated “Places to stay in Sheffield – Best Price Guarantee, and further text read “easyHotel Sheffield City Centre From £28”.
Booking.com said the dates and prices displayed were “dynamically chosen” by Google from data it provided, meaning they could vary for each user and search.
They believed the information displayed in the ad was accurate and not misleading.
The ASA said the data Booking.com provided showed that seven bookings were made at the easyHotel Sheffield City Centre for the advertised price in May.
It said it did not receive any other information from Booking.com, such as the number of dates on which rooms were available for £28, to enable us to make an adequate assessment of the proportion of rooms at the hotel available at the advertised price and therefore considered that the information provided was insufficient to substantiate the claim “From £28”.
The watchdog found Accor’s ad for £27 rooms at its Ibis Budget Birmingham Centre were only available for a night’s stay on July 30, and was therefore “not a true reflection of the price most consumers could expect to pay”.
It said consumers would understand the claims “Travelodge Nottingham Riverside From £25” and “Travelodge Swansea M4 From £21” to mean that a significant proportion of rooms at each hotel would be available at the advertised price.
However, it understood that the advertised prices were only available to book for a night’s stay on May 18.
In Hilton’s case, the ASA said it had not seen sufficient evidence to demonstrate that a significant proportion of hotel rooms were available at the advertised prices of £68 at Hampton by Hilton Hamilton Park or £59 at Hampton by Hilton Newcastle.
ASA operations manager Emily Henwood said: “Advertised prices must match what’s really available.
“If only a few rooms are actually offered at the price shown, or it only applies to a specific date, then this information must be made clear to avoid misleading people.
“Otherwise, it’s unfair to anyone trying to find a good deal or make informed choices about where to book.
“People should be able to trust the prices they see in ads and these rulings show that we will take action if the rules are broken.”
Travelodge said in a statement: “Travelodge takes its responsibilities under the ASA advertising guidelines seriously. The prices shown in the ads were generated from our live pricing feed and represented the cheapest bookable date available.
“We recognise that customers expect clarity and transparency in pricing, and we continue to work closely with Google to ensure all ad formats are clear and fully compliant. This particular ad format was removed prior to the ASA ruling, and we remain committed to transparent, accurate, and great-value pricing for all our customers.”
Business
‘Keep STT on equity cash market lower than F&O’ – The Times of India
MUMBAI: Representatives of India’s capital market on Tuesday urged finance minister Nirmala Sitharaman to keep the securities transaction tax (STT) on cash equity lower than that of equity derivatives trades in the forthcoming Budget. They also suggested to the ministry that in case of a buyback of shares, tax should be imposed only on profits and not on the total buyback value, sources said. Currently, STT in the equity cash market ranges from 0.025% to 0.1% while in the derivatives market the rates are between 0.125% and 0.1%. A lower rate in the cash segment could lead to more participation in the segment compared to the derivatives section. Of late, govt, policy makers and regulators are looking at ways to rein in trading and speculative habits of retail investors using equity derivatives products, especially options.On Tuesday, the group of people also suggested to the finance minister that the rate of short-term dividend tax which domestic investors pay should be in line with what NRIs pay. tnn
Business
Forbes makes plea to UK Government after closure plans for ‘cornerstone’ plant
The Scottish Government has pledged it will “explore all options” to support ExxonMobil workers in Fife, after the energy giant announced it is to close its plant at Mossmorran.
But Scotland’s Deputy First Minister Kate Forbes said it was also “crucial” that Labour ministers at Westminster “consider what more they can do for the workers at the plant and take urgent action”.
She spoke out at Holyrood hours after ExxonMobil announced its ethylene manufacturing plant, which produces the base material for many plastics, is expected to close in February.
The move puts 179 workers directly employed at Mossmorran at risk, along with the jobs of 250 contractors – although there is the possibility of 50 staff transferring to the Fawley Petrochemical Complex almost 500 miles away in Hampshire.
In a statement, ExxonMobil said its Fife Ethylene Plant “has been a cornerstone of chemical production in the UK for 40 years”,
However, the firm added that the closure “reflects the challenges of operating in a policy environment that is accelerating the exit of vital industries, domestic manufacturing, and the high-value jobs they provide”.
ExxonMobil said: “We considered various options to continue production and tested the market for a potential buyer, but the UK’s current economic and policy environment combined with market conditions, high supply costs and plant efficiency do not create a competitive future for the site.”
Ms Forbes said she was “extremely disappointed” by the move.
Speaking at Holyrood, she said: “I wish to provide my assurance to the workforce that we will work with them and their representatives to explore all options to support them.”
She pledged the Scottish Government would now “engage constructively” with Fife Council and others to “consider all possible actions to mitigate any impact on the local economy”.
Ms Forbes also promised to convene a taskforce “to urgently consider any actions the Scottish Government, with the limited economic powers we have, could take to mitigate the impact of this decision”.
With the planned closure coming after the oil refinery at Grangemouth was shut down in April this year, the Deputy First Minister also said work to find an alternative future for this site would be expanded to include Mossmorran.
But she said the UK Government must work with her to “secure a future for the site”.
Ms Forbes said: “ExxonMobil has been clear in its announcement today that the UK’s current economic and policy environment does not create a competitive future for its site.”
Stressing that the “levers for an industrial intervention” lie with Westminster, she added: “I believe it is crucial that UK ministers consider what more they can do for the workers at the plant and take urgent action – overdue action – to address the high cost of energy which is slowly crippling industry.”
Scottish Secretary Douglas Alexander, however, said that the closure decision was “ultimately a commercial one” for the company.
“This is an incredibly difficult time for the Mossmorran workers and their families,” Mr Alexander said.
“The UK Government has explored every reasonable avenue to support the site, but the closure decision is ultimately a commercial one for Exxon, a company which is facing significant global challenges.
“Our focus now must be on supporting the workforce in the months ahead.”
Sharon Graham, the general secretary of the trade union Unite, said it was “utterly disgraceful” that the company had decided to shutter the plant.
“ExxonMobil must withdraw the closure threat and enter into meaningful negotiations with all key players to ensure the future of the plant and jobs,” she demanded.
The union’s industrial officer, Bob MacGregor, added: “Today’s news is devastating for the workers at the plant and the local community as well as the industry as a whole. Unite will do everything it can to support our members through the next few weeks.
“ExxonMobil is one of the richest companies in the world. It cannot be allowed to walk away and leave an industrial wasteland in Fife.”
Robert Deavy, a senior organiser for trade union GMB, which represents contractors on the site, called for politicians to put together a “planned and measured” transition.
“This is more grim news for workers, their families and communities but exactly how much more bad news is needed before ministers protect jobs and our country’s energy security? How many dominoes have to fall?
“Our members do not need more politicians wringing their hands or making more speeches promising just transitions. There is nothing just about what is going on and there is no transition.
“We need politicians willing to finally stand up and demand an industrial strategy that protects the UK’s crucial oil and gas while actually delivering a planned and measured transition instead of the economic carnage unfolding day by day.”
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