1. First, beauty is subjective and many of these so-called ‘ugly’ buildings will be considered attractive decades in the future. Think Brooklyn Brownstones or New England triple deckers, both considered scourges at one time.
2. Labor costs. It’s relatively expensive to build ornate masonry buildings in high-wage economies. Overall, this is a good thing.
3. Zoning. It’s difficult to get approval for most building projects, doubly so if the building is in some was unique or unusual . Developers go with has been approved before.
4. Survivorship bias. Old, ugly buildings were torn down long ago, leaving the relatively attractive standing.
There is no need to conjure up half-baked, speculative, psychological theories like the author does.