The definition of a low-rise building in the real estate industry varies. The most applicable definition of low-rise buildings is a multi-story building that can be grouped with other buildings of the lowest height category in a particular real estate market.
Historically, buildings were limited in height due to engineering limitations. Limited by the materials and techniques used, buildings were not able to support their own weight safely above a certain height.
As building methods and real estate markets evolved, higher and higher structures were possible. High strength concrete, steel frame construction and elevators allowed buildings to break the height limitation of buildings. Increasing land values also financially justified the cost of building higher. Although steel frame construction allowed buildings to be constructed ever higher, the technology is also applied to building low-rise structures.
Buildings that remained once larger buildings were constructed became part of a low-rise or mid-rise grouping of buildings that represented older areas of the market. Zoning limitations also place a height limit on buildings in certain areas of a given market. In other situations, low-rise buildings might be sufficient to meet the needs of the local market where land values and construction costs do not justify taller buildings.