Thought Leader in ‘Skynomics’ Shares Skyscraper Knowledge at Spring 2025 Henry George Lecture

An urban and real estate economics expert discussed the global growth of skyscraper architecture and the future of tall-building construction at St. John’s University’s semiannual Henry George Lecture Series, hosted by The Peter J. Tobin College of Business on April 14.

Keynote speaker Jason M. Barr, Ph.D., Professor of Economics at Rutgers University-Newark and a member of the editorial boards of the Journal of Real Estate Finance and Economics and the Eastern Economic Journal, attempted to demystify claims related to skyscrapers while taking a deep dive into what he calls “skynomics,” or the incentives behind building skyscrapers. 

Dr. Barr, whose research has been featured in the Washington Post,The Economist,The New York Times, and other publications, explained that taller buildings cost more to construct per square foot as building heights grow and added materials are required for wind bracing, foundation construction, and more.

Nevertheless, skyscrapers remain a popular architectural choice in urban environments. 

“What is driving the tall building craze worldwide is demand,” Dr. Barr explained. “Mass urbanization is a constant global trend, and skyscrapers are an effective way to meet those demands.”

“Yet, the height premium means people pay more to be on higher floors,” Dr. Barr continued. “The profit-maximizing height sets the marginal cost of adding a floor equal to the marginal benefit.”

The Spring 2025 Henry George Lecture was delivered on the University’s Queens, NY, campus and via livestream to an audience of more than 100 students and guests, including representatives from several Georgist organizations. The series pays tribute to Mr. George (1839–97), a 19th-century American political economist who advocated for progress and social development and  believed that, while privately owned, the economic value of land could be taxed to fund public services and promote social equity.

Dr. Barr engaged the audience in a 45-minute discussion before opening the session to questions. In answer to one question, he said tall-building development could solve housing affordability problems that have plagued municipalities such as New York City since Mr. George first delivered his message in the 19th century.

“The real issue is the lack of construction big cities face,” Dr. Barr said. “These cities have created roadblocks to rapid construction. In New York City, 92 percent of all buildings within one kilometer of a subway stop are three stories or less. You want to stop the housing affordability problem? Turn those three-story buildings into four-, five-, and six-story buildings. If you doubled the floor space along subway lines, you would get a million housing units.”

In a light moment, Dr. Barr pointed out common misconceptions of tall-building history that many in attendance were surprised to learn. For example, Dr. Barr noted that the title of “first skyscraper”—given to the Home Insurance Building in Chicago, IL—is the product of urban legend and a battle between rival architects. “They just made up the title,” he said.

Likewise, he said the absence of skyscrapers between New York’s City’s Financial District and Midtown Manhattan is not rooted in geological considerations, but rather socioeconomic ones.

“What was driving the location of skyscrapers had nothing to do with the lack of bedrock to build on, as has been said,” Dr. Barr explained. “The reason for skyscrapers in Midtown was that the middle class had moved out of lower Manhattan northward to Central Park. The area around Madison Square Park became a great commercial district with shopping, and the land values shot up. At the same time, the Lower East Side remained one of the most crowded tenement districts in the world, and thus tall buildings were not economically viable.”         

Dr. Barr was introduced by Maciek Nowak, Ph.D., Dean of the Tobin College of Business and Joseph H. and Maria C. Schwartz Distinguished Chair, and Aleksandr V. Gevorkyan, Ph.D., Professor, Department of Economics and Finance. Dean Nowak emphasized the importance of the lecture series to the Tobin College of Business.

“The Henry George Lecture series has drawn attention to Tobin and St. John’s, not only from students, but also from people associated with the Georgist movement,” Dean Nowak said. “Today, we are pleased to add Dr. Barr to our list of esteemed guests.” 

The Henry George Chair in Economics is an endowed position at the University launched with a grant from the Robert Schalkenbach Foundation, which is now known as the Progress and Poverty Institute. The position was established to reward, support, and encourage scholarly activities aligned with those of Mr. George. Dr. Gevorkyan has held the Henry George Chair since 2019. 

In his welcome remarks, Dr. Gevorkyan introduced Dr. Barr as a key voice in urban economics. 

“Dr. Barr is one of the thought leaders in urban economic development and real estate economics whose research has been closely read and studied by our students here at St. John’s,” Dr. Gevorkyan said. “It is an honor to have him here today, as the Henry George Lectures are closely followed by pioneers in economics.”

“In fact, since 1981, the lecture series has welcomed distinguished economists exploring relevant issues in economic theory and policy, including 11 Nobel Prize in Economics laureates sharing their work with our students,” Dr. Gevorkyan added. “So, one could say we tend to predict them.”