Your argument only applies to unreinforced masonry, which is no longer allowed by code in seismically-prone areas. For fire resistance you can use reinforced concrete, steel or aluminum framing, or wood framing with non-combustible walls. Or even go exotic with various prefab options and 3D printing.
As for the higher cost, this has become mostly an urban myth. In regions with low construction costs such as the South or the Midwest ($130-180/sqft,) the cost difference is minimal. In areas with high construction costs such as CA ($200-700/sqft,) the difference is either immaterial or negative (thanks to the insurance savings.)
As for the higher cost, this has become mostly an urban myth. In regions with low construction costs such as the South or the Midwest ($130-180/sqft,) the cost difference is minimal. In areas with high construction costs such as CA ($200-700/sqft,) the difference is either immaterial or negative (thanks to the insurance savings.)