Structural design code provisions worldwide prescribe relatively small seismic force reduction factors for seismically base‐isolated structures, making their response to design‐level earthquake excitation essentially elastic. This paper uses the method of dimensional analysis to prove that; in most cases, this is not a conservative design approach but a necessity that emerges from the dynamics of base‐isolated structures. It is shown that allowing typical base‐isolated structures to yield results in large displacement ductility demands for the structure. This phenomenon is caused by the change in the nature of the ground motion excitation as it is transmitted to the structure through the seismic base isolation system as well as by the change in the distribution of displacements between the structure and the isolation bearings caused by yielding of the isolated structure. Copyright © 2013 John Wiley & Sons, Ltd.