Robin Hanson in Overcoming Bias:
Urban economics studies the spatial distribution of activity. In most urban econ models, the reason that cities aren’t taller is that, per square meter of useable space, taller buildings cost more to physically make. (Supporting quotes below.) According to this usual theory, buildings only get taller when something else compensates for these costs, like a scarce ocean view, or higher status or land prices.
Knowing this, and wondering how tall future cities might get, I went looking for data on just how fast building cost rises with height. And I was surprised to learn: within most of the usual range, taller buildings cost less per square meter to build. For example, for office buildings across 26 US cities, 11-20 stories tend to be cheaper than 5-10 stories, which are cheaper than 2-4 stories (quote below)