An important (maybe the most important) factor to consider in residential construction is $$COST$$. This heavily impacts what kind of housing is built. Affordable housing has increasingly become a hot topic as demand soars due to low housing supply, resulting in high prices–there’s definitely sticker shock when it comes to buying a house now even compared to less than a decade ago.
I think this graphic published in the Charlotte Observer in August 1992, even at over 30 years old, provides some great insight into why “luxury” housing gets the nod over more affordable options. Land costs have exploded in Charlotte as the city has grown and is starting to densify, while material and labor costs have also increased while wages have failed to keep track.