Chicago and the Economics of Skyscrapers
- On the Money Magazine
- Jul 16
- 2 min read
Joseph Dai, Whitney M. Young Magnet High School, Fall 2024
What’s the first image that comes to mind when you think of downtown Chicago? Most likely, you will think of the towering skyscrapers and bold architecture. The world’s first skyscraper, the Home Insurance Building, was built here in 1885. Throughout the 20th Century, America was the epicenter for skyscraper construction, with cities like Chicago and New York City competing for the most magnificent skyline.
However, in the 21st Century, America no longer holds the skyscraper throne. One doesn’t need to look far to see this shift—Toronto is in the middle of a high-rise boom. Design firm Autodesk states, “To date [2022], Toronto has 100 high-rises in construction, 300 proposed high-rises ... 220 construction cranes—more than any other city on the continent” (Autodesk, 2022). Soon, Toronto is expected to surpass Chicago and rank second only to New York City in North America for the number of skyscrapers. Frank A. Clayton, a Senior Research Fellow at Toronto Metropolitan University, highlights how “higher land costs in the Toronto region make higher-density development more viable than lower-density development.” Furthermore, Toronto’s skyscraper growth is driven by rapid population gains, economic expansion, and limited transit options, which pressure developers to build up instead of out.
Across the Pacific Ocean, skyscrapers are being built at an increasing rate. According to the Council on Tall Buildings and Urban Habitat, “Before 2001, 49% of all buildings over 200 meters were located in North America; however, this number has dropped to 15%, as large numbers of skyscrapers are being built in Asia and the Middle East” (CTBUH, 2023. For Hong Kong, high-rise construction serves a practical role, maximizing the living space on its mountainous islands. Additionally, for many emerging countries, skyscrapers carry a symbolic weight. Professor Dwight H. Perkins, Research Professor of Political Economy at Harvard University, notes that “Some of the tallest skyscrapers in countries, such as China and the UAE, are built for prestige reasons rather than attracting foreign investment—a political statement that the country has arrived as an advanced nation.”
Though Chicago isn’t at the forefront of skyscraper construction anymore, Chicagoans have much to be proud of. As the birthplace of the skyscraper, our city has started a trend that has lasting impacts on what cities look like and where humans live.
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