[neilparikh]

The idea is that we charge a land value tax (https://en.wikipedia.org/wiki/Land_value_tax) equal to market rent value of the land. So you're free to own the land if you pay the tax.

This tax would obviously be higher in desirable areas, so there would still be a price mechanism to ensure that the land is allocated effectively. If I bought a parcel of land in North Beach, but then didn't use it productively, I probably wouldn't be able to pay the tax and I would have to get rid of it. Additionally, since the market value of land reflects its most productive use, it would incentivize using the land in the efficient use (ie. densely in a high value area, since that lets you split the tax over more people).