This is a question asked often by long time property owners.
There are several answers:
1) The owner of an existing modest home wants to expand, but encounters the reality of new flood elevation regulations and construction codes.
2) A builder/developer purchases an older home in a prime location and pays a premium for the land. The architect designs a home to take advantage of views and permitted square footage.
3) The current structure is a non-confirming use- for example a duplex in a residential zone. In order for the property owner to make any size changes (referred to as cubic content in the zoning laws), the building must convert to current zoning. The owners have to weigh the costs of a substantial remodel (typically including lifting the structure to meet elevation codes) versus building new.
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