Fifth Wall Backs Higharc’s $95M Series C As AI Pushes Deeper Into Homebuilding

Higharc, the Durham, North Carolina-based AI platform for homebuilding, has raised $95 million in Series C funding, bringing its total funding to $170 million. The round was led by Insight Partners, with Fifth Wall investing alongside Wellington Management and a broader group of backers including Spark Capital, Lux Capital, SE Ventures, Simpson Strong-Tie, PSP Partners, RXR Arden Digital Ventures, Suffolk Technologies, Vertex Ventures, NC Tweener Fund, and MetaProp.

For Brendan Wallace and Fifth Wall, the investment reflects a conviction that AI’s biggest impact in construction will not come from surface-level automation, but from software that understands the physical complexity of the built world.

“Everyone is slapping the word AI on construction right now, but almost none of it actually works,” Wallace said. “And that’s because most AI fails at the one thing that homebuilding demands, which is spatial reasoning.” - Brendan Wallace

Founded by Marc Minor, Michael Bergin, and others, Higharc develops AI-powered software that generates 3D spatial data for homes. The platform helps builders streamline design, estimating, sales, and construction by turning housing plans into structured, build-ready systems. Wallace said this is where Higharc separates itself from generic AI tools.

“If you ask a generic model to generate a house, you get back something that’s really beautiful and elegant and looks visually and aesthetically cool, but it’s completely unbuildable,” Wallace said. “That’s where Higharc comes in, because Higharc has cracked this.”

Rather than generating images or conceptual designs, Higharc creates homes as spatial databases, incorporating code requirements, construction standards, real estate geometry, and build logic into a single AI-driven model.

“Instead of generating pictures, it generates homes as spatial databases,” Wallace said. “Every code requirement, every construction standard, all of the real estate geometry, all in a single AI model. That’s the foundation that makes the outputs build-ready from day one.”

For homebuilders, the potential impact is significant. According to Wallace, builders using Higharc are “compressing product development from years to weeks,” cutting time to market by “25 to 50%,” and adding “10 to 15% points of margin” through the technology. The company is also expanding beyond builders into the broader homebuilding supply chain. With the Series C, Higharc is bringing AI-powered estimating into supplier workflows and partnering with US LBM, one of the largest private building materials distributors in the country.

“One AI vision model turns any flat 2D floor plan into a 3D model that ties straight into the purchasable materials,” Wallace said. “They’re putting builders and suppliers on the same system. They’re speaking the same language.”

That supply chain expansion is central to the company’s ambition. Higharc is not only helping builders design homes faster. It is creating a shared digital layer across the housing production process, connecting design, estimating, materials, sales, and construction in one system.

For Fifth Wall, the investment fits directly into the firm’s broader built world thesis. As real estate and construction continue moving from legacy workflows into AI-enabled platforms, Higharc is positioning itself as core infrastructure for how homes are created.

“This is the operating system for how homes get designed, estimated, and built in the age of AI,” Wallace said.

Higharc has also earned national recognition, including a spot in the Deloitte Technology Fast 500 and Fast Company’s Most Innovative Companies of 2026. With $95 million in new funding and backing from Fifth Wall, Insight Partners, Wellington Management, and other major investors, Higharc is poised for a moment when homebuilders are seeking better ways to manage complexity, reduce time-to-market, and improve margins.

For Wallace and Fifth Wall, the bet is clear: the future of homebuilding will be driven by AI systems that can understand not just what a home looks like but also how it is actually built.