Earlier quoted context omitted.
> Higher structures require deeper and more complex foundations, more reinforced concrete and steel, extra precautions for strong winds and earthquakes. Setting up proper elevator systems, plumbing, air venting, noise isolation, electrical wiring and natural gas hookups is also subject to more restrictive building code (and for a good reason). This is before we get into the costs of underground/overground parking, wh…
We can take turns naming even more expensive high rises, but the goal is to show that increase in high rises leads to drastic overall decrease in cost of living. Manhattan, in theory, should be dirt cheap as far as $/sq.ft. due to massive supply, and it's not. Neither is Singapore or Shanghai. There's a natural price floor for such buildings, and it's not yet competitive with pricing on cheaper options, such as subur…
Because it's supply and demand. The demand is very high in Manhattan. What we would expect is that anywhere there is such high demand that the price is higher than the construction cost, there would be new construction (increase in supply) until prices fall to meet the construction cost. In other words the cost of an apartment in any city should have the same floor (unless every inch of the city is already covered in high rises) because new apartments would be built until the rent falls below the construction cost of building more apartments.
But we don't see that because of zoning regulations that prohibit it. (And in part because of property taxes that discourage construction; land value tax is better in cities.)