&quot;The real problem with land [and property taxes] is the fact it tends to flow into the cost of rent and homeownership.&quot;<p>The price of property and rent in popular places will be what the market will bear. So with tax, the rent would stay the same. Price of apartments would go down, because buyers  need to pay the tax, so they cannot afford as much.<p>Apartments in space efficient towers would be grow in value relatively, because they don&#x27;t need to pay so much tax, so there would be incentive to build more densely.<p>This means more apartments and cheaper prices.