The architectural and engineering special interests have really captured their regulators on this one.
It goes way beyond design.
Early housing reformers in the 1920s, explicitly called for punitive fire regulations for multifamily buildings to make them on economical while admitting that they would not ask for any fire regulations for single-family buildings whatsoever.
[1] https://www.tandfonline.com/doi/abs/10.1080/0194436920897553...