Tuesday September 08, 2026
Choosing to live in a high-rise, or serving on the board of one, comes with a distinct set of trade-offs. While skyscrapers offer a convenient lifestyle, they often come with higher expenses and less privacy than a single-family home.In this article, we'll explain what defines a high-rise, how it compares to low-rise living, what board members should know before serving a high-rise, and what current budget trends could mean for high-rise finances in 2026.
What is a high-rise?
Before comparing high-rise and low-rise living, it's important to understand what qualifies as a high-rise in the first place. While definitions vary by country and organization, the National Fire Protection Association (NFPA) generally classifies residential buildings as high-rises when they reach seven stories or more.
Buildings exceeding 40 to 50 stories are often considered skyscrapers, although some high-rises meet that threshold as well. By comparison, low-rise properties are typically four stories or fewer, and may include building types such as garden-style apartments and low-rise condominiums.Height is only part of the distinction. High-rises are designed with more complex infrastructure, including multiple elevators, advanced security systems, and enhanced fire and life-safety measures. They are also commonly located in dense urban areas, where vertical development maximizes land use and often provides residents with city or waterfront views.
Understanding these differences can help residents and board members evaluate how building design influences lifestyle, operations, maintenance needs, and long-term planning.
High-rise vs. low-rise
Low-rise buildings, sometimes called garden apartments, are typically four stories or fewer. They tend to have simpler infrastructure, fewer (if any) elevators, smaller staffs, and lower monthly fees, but also fewer amenities and less centralized security.High-rises flip that equation, offering more amenities, services, and convenience at a higher monthly cost. Neither is objectively better. The right fit comes down to your priorities and how you want to live.
Pros and cons of high-rise living
Pros: Higher-floor homes often offer better views and a quieter living environment, along with access to amenities and added convenience.Cons: Those benefits typically come with higher monthly fees, more shared spaces, and less private outdoor space. However, monthly fees often cover services and maintenance responsibilities that homeowners would otherwise manage themselves, while shared amenities can provide access to facilities that may be difficult or expensive to maintain individually.
Advantages of high-rise living
- Views and natural light. Higher floors often offer unobstructed city or waterfront views and brighter living spaces.
- Prime locations. Many high-rises are close to business districts, cultural attractions, dining, and entertainment.
- Amenities and convenience. High-rises often feature amenities such as fitness centers, pools, and concierge services, along with onsite management and maintenance support.
Disadvantages of high-rise living
- Higher costs. The expense of operating and maintaining a large building is often reflected in monthly fees. In return, residents often benefit from professional property management, maintenance services, amenities, and shared resources that help simplify homeownership.
- Shared spaces. Residents typically share elevators, hallways, and amenities with many neighbors, which can result in less privacy. At the same time, these shared spaces often foster a greater sense of community and provide convenient access to amenities and services.
- Building rules and limitations. High-rises may have restrictions related to pets, parking, storage, or other aspects of building life. These policies are often intended to support building operations, preserve common areas, and maintain a consistent living experience for residents.
High-rise property management: Pros and cons
Living in a high-rise also means living within a more structured property management environment. For residents, that can make daily life easier, with onsite staff, faster maintenance response times, and well-maintained common areas. It can also mean stricter rules and occasional disruptions when major building systems require repair or upgrades.Advantages of high-rise management
- Onsite support. Dedicated staff can often respond to maintenance issues and resident requests more quickly.
- Added convenience. Front-desk services, package handling, and guest check-ins can simplify day-to-day living.
- Consistent upkeep. Common areas and amenities are maintained by dedicated operations and maintenance teams.
Disadvantages of high-rise management
- More rules. Shared spaces and systems often require stricter policies around noise, pets, and renovations. These guidelines can help support resident comfort, building safety, and the long-term condition of shared assets.
- Costly repairs. Major building systems can be expensive to maintain and replace. Proactive planning and reserve funding help boards address these projects while preserving building performance and property values.
- Ongoing projects. Large buildings frequently undergo maintenance or capital improvement work that may affect residents. Many of these projects are investments in the building's future and contribute to the long-term quality, functionality, and value of the property.
What to expect as a high-rise board member
Every high-rise operates a little differently, and board service in a high-rise isn't the same experience as serving on the board of a single-family or master-planned community. Several factors set high-rise governance apart:- Building structure
- Maintenance needs
- Security requirements
- Amenities
- Insurance
- Resident dynamics
FirstService Residential's ongoing research across dozens of high-rise markets in the US and Canada consistently points to the same core budget drivers:
- Reserve study and funding
- Retaining top talent
- Insurance availability and cost
- Utility prices
- Sustainability
2026 trends and insights
Reserve funding takes center stage
Reserve funding has become the defining budget theme across nearly every high-rise market. Legislative changes following the Surfside building collapse in 2021 pushed many states, including Florida, Illinois, Virginia, and others, to require structural reserve studies for older buildings. But the shift toward stronger reserves is no longer just about compliance.FirstService Residential's 2026 BENCHMARK High-Rise report, based on data from nearly 1,500 buildings across 22 North American markets, found that boards are increasingly proactive rather than reactive: updated reserve studies, aging infrastructure, and rising construction costs are pushing many communities toward higher contributions and more deliberate long-term capital planning, rather than waiting for legislation to force the issue.
Insurance relief, but not everywhere
For the past several years, insurance has been one of the fastest-growing line items in high-rise budgets, particularly in coastal and disaster-prone markets. The 2026 BENCHMARK report shows the first signs of relief in parts of that market: some South Florida buildings are now seeing meaningful premium reductions.Rather than treating that relief as savings, many boards are redirecting it toward reserve funding, deferred maintenance, and staffing, a sign that insurance volatility over the past few years has made boards more cautious about how they use any newfound flexibility in the budget.
Staffing and service standards
Retaining skilled onsite staff remains a competitive challenge in markets like New York, San Francisco, Seattle, and Boston, where high-rises compete with the broader service and hospitality industries for talent.At the same time, service expectations are rising. FirstService Residential's newly introduced High-Rise Standard, developed with ATELIER CX, the consulting division of Forbes Travel Guide, brings a hospitality-based training framework to onsite teams and gives select properties a path toward Forbes Travel Guide's VERIFIED™ Luxury Residences designation.
For boards, the message is the same one driving reserve strategy: consistency and long-term planning matter more than reacting to whatever issue is most urgent that month.
Utilities and sustainability stay on the radar
Utility costs, particularly energy and water, continue to pressure budgets in both hot- and cold-weather markets, keeping sustainability a standing budget item rather than a one-off initiative. Many boards continue to fund solar installation policies, EV charging infrastructure, and other resource-saving upgrades, both to manage rising utility costs and to protect long-term property value.2026 High-Rise BENCHMARK
High-rise living offers a distinct mix of amenities, prime locations, and modern conveniences that make it appealing to many residents, alongside real trade-offs in cost and privacy. For board members, managing a high-rise well takes a solid grasp of both the lifestyle side and the operational and budget realities behind it.FirstService Residential's 2026 BENCHMARK High-Rise report draws on data from nearly 1,500 of the roughly 4,000 high-rise communities the company manages across 22 markets in the US and Canada.
It covers:
- Budget allocations and cost benchmarks for insurance, staffing, utilities, and amenities across major North American markets
- Reserve funding trends in the wake of stricter state requirements
- Strategies to manage rising costs and generate additional revenue
- Guidance for building your next budget and long-term capital plan
Contact FirstService Residential, the high-rise management leader, to learn more about high-rise living.
This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.