41. Why Building Codes and Permits Make Homes Cost More with Maor Greenberg of Spacial

Why does it take so long and cost so much to build a home in America? Maor Greenberg, CEO and Co-Founder of Spacial, says the most expensive thing in housing is time.

In this episode of Housing Matters, I talk with Maor, a builder turned technology founder with nearly two decades of experience in architecture, real estate, and construction. We get into building codes, permit delays, and plan review, and what it would take to build more homes faster without giving up safety.

Maor explains how Spacial turns an architect's design into a 3D model, adds the structural, mechanical, electrical, and plumbing layers, and produces a permit-ready plan set checked against building codes before it ever reaches a city. We also dig into the question everyone asks about AI in construction: what happens when it gets something wrong? He walks through how Spacial uses a physics engine, its own controlled data, and licensed engineer review to manage risk and liability.

Along the way, we talk about why plan sets have grown from about 15 pages to more than 200, how state building codes differ from local ordinances and planning department rules, why permit and impact fees can top $200,000 in places like California, and why builders are often blamed for costs they do not control. I also share the story behind my company, Atlas, and the roadblocks innovative building materials face when they are not yet in the code book.

If you care about housing affordability, the housing shortage, construction costs, or why good ideas stall at the permit counter, this conversation is for you.

What you will learn:

How building codes, permitting, and plan review affect housing costs and timelines

Why construction is so fragmented and how coordination errors create expensive rework

How permit-ready design automation works

How AI, physics engines, and human engineers work together to reduce risk

The difference between state building codes, local ordinances, and zoning

Why new building materials and prefab construction struggle to get approved