Marketplace Morning Report

Episode: Finding a contractor one year after California's wildfires
Date: January 6, 2026
Host: David Brancaccio
Main Guests: Dustin Kunkel (homeowner and solar panel business owner), Lauren Seidel Baker (economist, ITR Economics)

Episode Overview

This episode of Marketplace Morning Report focuses primarily on the ongoing struggle California homeowners face in finding a contractor to rebuild after devastating wildfires. Host David Brancaccio shares stories from his own neighborhood in Altadena, CA, highlighting the shortage of qualified contractors, surging building costs, and the personal setbacks experienced by fire victims. Additional segments cover economic stratification in the U.S., the upcoming Davos Economic Forum, and the latest updates on U.S. stock markets.

Key Discussion Points & Insights

1. The Challenge of Rebuilding After Wildfire (00:01–03:52)

• Devastating Losses:
  • $27 billion in destroyed home value from wildfires in Southern California.
  • Of 12,000 homes destroyed, only 545 rebuilding projects are currently underway—underscoring the scale of the crisis.
• Dustin Kunkel’s Experience:
  • Kunkel, a father of two and solar professional, recounts renting out his home before the fires and now struggling to rebuild and move in with his family.
  • "Currently we live in a tiny little one bedroom with two girls, and they're growing too big for their little dinky room." (B, 01:07)
  • Sought to build a ~2,000 sq. ft., 3-bed/2-bath home with an accessory dwelling unit (ADU), finances permitting.
• Finding a Contractor:
  • Kunkel describes a grueling search, with one initial hopeful contact ultimately ghosting him.
    • "I kind of had one guy in mind, and I called him and he was excited, and then he stopped answering phone calls... I didn't necessarily feel all that comfortable going to somebody that wasn't returning my phone calls." (B, 01:48)
  • Ended up interviewing between 20 and 40 contractors, using video calls and referrals but often feeling uncomfortable with their bids or proposals.
    • "At some point, people that would give me their price per square foot, I just ended up telling them to go kick rocks and I don't want to talk to them anymore." (B, 02:54)
  • Ultimately, hired the Renewal Altadena group, citing the trust built during interviews and their ability to understand Kunkel’s design vision.
• Surging Costs and Scarcity:
  • Before the fires, average building costs were around $400 per square foot, now realistically “maybe $450,” according to Kunkel.
    • "I think maybe 450 I think is probably realistic." (B, 03:29)

2. Regional Update and Human Impact (03:52)

• Only a fraction of permits issued have translated into meaningful rebuilding starts.
• Reference to another couple in the neighborhood who have lost every house they’ve ever lived in—six homes in total—to fire, emphasizing the deep, long-term trauma and housing insecurity facing residents.
• Brancaccio points listeners to additional stories online.

3. National and Macro-Economic Context

• U.S. Markets Update (05:11):
  • Indices are up slightly in early trading; anticipation over unemployment and hiring figures highlighted.
• Disparities in Economic Recovery (05:11–06:49):
  • Interview with economist Lauren Seidel Baker on the divergent impact of economic trends across U.S. income strata.
    • "The upper income segments...more likely to have a job...enjoying these rising wage gains, rising stock prices...a little bit more insulated. It's that lower income segment that gets hit harder by things like inflation." (E, 05:38)
    • For lower earners, two thirds of budgets now go to food, housing, and health care versus less than 50% for the top 20%.
    • "Their discretionary spending is getting crowded out." (E, 06:11)
    • "In the past four years, we've seen an improvement [for higher earners]; their budget going to necessities is decreasing as a share of their total expenditures." (E, 06:11)

4. International Business: Davos Economic Forum Preview (06:51–07:26)

• Preview of the upcoming annual Davos Economic Forum.
• Notable tidbit: President Trump will attend, and his office will be in a small church, with companies like Microsoft, McKinsey, and Ripple reportedly spending up to $1 million each to sponsor event spaces.

Notable Quotes & Memorable Moments

• On the magnitude of loss:

  • "Some numbers are too big to comprehend. Here's one. $27 billion—an estimate of the value of all the houses destroyed in the Southern California wildfires one year ago."
    — David Brancaccio (A), 00:01

• On contractor search fatigue:

  • “I probably interviewed, I don't know, 20, 30, 40 contractors.”
    — Dustin Kunkel (B), 02:12

• On economic disparity:

  • "About two thirds of [low-income] budget is now being spent on just food, housing, and health care. Compare that to less than 50% of the top 20% of income earners."
    — Lauren Seidel Baker (E), 05:38

Timestamps for Key Segments

• 00:01–03:52 – Rebuilding after California wildfires: homeowner story and the contracting crunch.
• 03:52 – Update on Los Angeles County’s slow rebuilding progress; six-time fire survivors mentioned.
• 05:11–06:49 – Economic disparities; Lauren Seidel Baker segment.
• 06:51–07:26 – Preview of the Davos Economic Forum and major corporate sponsors.

Summary Takeaways

• Finding a contractor post-wildfire is not just expensive—it is exhausting, competitive, and uncertain, with many homeowners interviewing dozens without success.
• Rebuilding is moving slowly: only a small fraction of those affected have active projects, and the human toll is deep.
• Economic recovery is highly unequal—lower-income households are bearing the brunt of inflation and budgeting pressure, even as some segments prosper.
• Broad economic and political stories, from Wall Street to Davos, are shaping the landscape in ways that filter down to homeowners and workers alike.

The episode offers a poignant, ground-level look at the aftershocks of disaster and the structural economic divides shaping Americans’ ability to recover.