Residential buildings in my country are very short but are too many and make up an entire village. Why not save precious space, foundation materials and costs by building a much taller residential skyscraper?
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Another reason, not yet mentioned is landscape/cityscape considerations, basically for aesthetic reasons. (Though this might not be applicable to your case)
In certain places, for example a historical city, where most houses are historic and 3stories high max and in the city skyline you only see a few church towers/bell towers etc stick out. You might not be allowed to build a 7story high modern apartment building. Because it disrupts the skyline and the historical feel of the city. These types of buildings might be accepted more in the outskirts of the city.
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