You could make that argument about any property (e.g. art). I guess your definition of "consumption" is "having something someone else doesn't"? But that isn't what most people mean, I think.
Edit: I think a tax on imputed rent could maybe be considered a consumption tax, and it would indeed make sense for it to be higher or lower depending on the location of the property. But a tax on the value of the whole property is not, because it also captures the value of the property as an asset. So that's why I think your argument is too broad.
Yes, there's a consumption component and a non-consumption component. Of course when either component goes up the total goes up. But the tax is on the total value and therefore it's not a consumption tax.
The cost of police, fire fighters, schools, roads, etc. don’t go up with the value of the home. There is no reason that you couldn’t charge a flat rate to every property owner - including businesses.
The cost of all of these things do increase with the value of the home, because the labor required to do it gets more expensive. The individual house price doesn't contribute to this but overall housing costs do.
SF has had an explosion in property values and thus struggles to find teachers, firefighters and police officers at the salaries it's willing to pay.