It is designed to be this way for investors more than consumers. Investors want these units to be as fungible as possible so they can better compare local market dynamics. Commodity trading has a lot of advantages for the investor after all. The consumers have no choice really but to be in this market if they want to be sheltered at all. It isn't like you really can exercise free market selection for something necessary like shelter. You have to take what has been made available and you cannot do without.
There is therefore no incentive to make a smart building that is favoring the tenant since this doesn't grow the potential pool of tenants in the area, that pool remains the same size as it was. It is unlike a lot of other markets where having a better product might actually grow the customer base of the product segment overall.
I think you hit the nail on the head. Lot of the finance machine works on standardization, like the are some building techniques, like spray-on insulation that work perfectly fine, but banks wont approve a loan on a building like that because its hard to inspect and repair.
This ironically makes these crappy buildings built to investor standards expensive, since banks will give cheap loans for it, on account of having low maintenance costs.
Of course all this exists only on paper.
My other question that I've never found a good answer to, is with mechanization, how is it that "cheap" modern buildings are so expensive. Or were old, traditional buildings super expensive? What is the cost of a unit of beauty per year, then and now...?
Old buildings were often expensive to their inhabitants because people were very poor. The cheap ones were largely torn down, because they fell apart because... they were cheap. Also, people largely lived in comparative squalor to today. Only about 50% of homes in America had an indoor flush toilet in 1926, and most of those were the urban north east. In 1926, the average home was <1k sqft (avg >2k in 2026). The modern idea of insulating a home wasn't around 100 years ago - houses were small, and cold, and you had to shit in a hut in the yard or in a bucket you threw out the window after.
Like cars, we've upgraded our standards of comfort and safety a lot. HVAC, electricity + internet networking, running water and bathrooms and water heaters, insulation, double paned windows, more and bigger appliances, safer standards for things like like staircase dimensions, increased fire/earthquake/hurricane/etc resistance, etc - there are a lot of things that just didn't get included in old homes.
Old houses were literally boxes made of wood, and now they're complex and mechanically rich in many subtle dimensions. Houses also have gotten bigger, so even as the price-per-sqft grows, so does the total size of the home.
Homes still aren’t really mechanized. I’ve seen attempts but they haven’t worked well yet. Labor and materials are so expensive!
And most new homes are built by one of a few big groups. Oligopoly issues again.
I'd say yes. Reading fairy tales and historical records, we see just how huge were the prices. A pair of boots could be worth a year's income of a peasant.
We have not made any progress, and perhaps we don’t need to, when it comes to architecture since World War I. There have been a few projects like La Sagrada Família, but those are exceptionally rare.
Suburban homes. What a disaster and embarrassment to the human race.
If you like neoclassicism and hate brutalism, then I would say you are very strange too. To me, brutalism hits the same things neoclassicism does but much more organically and better.