that people would construct and buy luxury apartments, when you could instead spend that money on building luxury lower density housing that rich people actually want.
Rich people generally want to show off their wealth, which isn't very easy with apartments. They also tend to want lots of space, which of course is also difficult with apartments.
Rich people live in mansions, not fucking apartments.
yeah, and i think part of the issue is that you'd really need the city itself to push for it and organize it.