[pydry]

That's essentially my point. A house in the city center which consumes the same amount of land as an apartment block would face the same tax bill.

Who would want that house with that tax bill?

[imtringued]

The bill is high because people are willing to pay it. If the neighboring properties are 3 story multifamily buildings then this one will be upgraded to a 3 story building as well.

[merrywhether]

Someone who wants to demolish it and turn it into an apartment building! That’s literally the point of LVT: incentivizing increasingly efficient usage of land in high-value areas.