Tradition I'd say. In scandinavia all apartment buildings have a shared laundry in the basement for used by tenants who can't squeeze in their own machine (And yes, UK people, having the washing machine in the kitchen is crazy).
"And yes, UK people, having the washing machine in the kitchen is crazy"
Yes, I agree this isn't great. The kitchen is a place to prepare food, not the place to handle laundry. However, most flats (and houses) in the UK don't have space in the bathroom for a washing machine. And most don't have dedicated utitility storage space; so the kitchen is the only place left. In an open-plan kitchen/living area, this is even less ideal. New build flats tend to have a utility cupboard for the washing maching (often in the hallway). But most blocks of flats don't have communal laundry facilities, and I suspect they wouldn't be particularly appealing to many flat dwellers. Even in a studio flat, I'd rather have my own washing machine.
One thing I have noticed about the US is that front-loading washing machines are very expensive. In the UK, the cheapest front-loading washing machines start from about £160 (approx $240 or €215) and then go up. At the £200 - £350 price range, there's a large number of models to choose from. What's keeping prices so high in the US?
The building-laundromat thing I think of as very Swedish (all the way down to having rules governing how machines are reserved). Maybe also Finnish? Not sure about Norway.
In any case, they aren't common in Denmark, though a few buildings have them. The basement is more often given over to bike parking and storage cages. In Copenhagen, coin laundromats are extremely common as a result. I go to one that's about 2 blocks away. It's getting more common for people to install an in-apartment washing machine if they remodel, though, and newly built buildings all come with the appropriate hookups installed.
In Sweden, a (free-for-tenants-to-use) shared laundry room (or in-apt laundry) has been legally mandated for all new apartment buildings since the 1940's, which is the reason there are no laundromats, and no coin-op laundry rooms either.