The land value (as opposed to the value of the buildings on top) is being extracted by landowners rather than the community.
If instead it was taxed (by raising property taxes or LVT), this would have three follow on effects:
* Treating housing as a bar of gold would stop (buying it as a store of value and leaving it empty). This would free up a lot of space.
* The proceeds of the tax could be used to build more housing without slashing other parts of the budget.
* Rich home owners - those who need the money the least - would stop getting effective handouts from those who need the money the most (renters).
The land value (as opposed to the value of the buildings on top) is being extracted by landowners rather than the community.
If instead it was taxed (by raising property taxes or LVT), this would have three follow on effects:
* Treating housing as a bar of gold would stop (buying it as a store of value and leaving it empty). This would free up a lot of space.
* The proceeds of the tax could be used to build more housing without slashing other parts of the budget.
* Rich home owners - those who need the money the least - would stop getting effective handouts from those who need the money the most (renters).