Disruptive Technologies And Real Estate Pricing

You don't need a degree in urban land economics to know that real estate prices generally increase with elevation, or to understand why, since most of us appreciate a great view.

But this hasn't always been the case. In ancient Rome, for example, the poor tended to live on the upper floors of apartment buildings where views were best but it was a long walk up and the risk of perishing in a fire was much higher.

The same was true in early New York City, where upper floors tended to be occupied by servants, custodians and the poor, or were used for storage.

The introduction of elevators in office buildings in the 1870s led to the construction of much higher buildings, but it wasn't until the 1920s that their wider adoption, together with improved fireproofing, slowly brought about a change in public perceptions and relative values.