It's even worse than that. LVT, especially when combined with migration, just evicts the people who grew up in a place. It's the fastest way to create the soulless places everyone complains about.
Does it really? In LVT conditions, aren't people who utilize land ineffectively incentivized to sell it to someone who'd build more dense dwellings on it? Maybe they'd strike a deal - pay less tax, swap a SFH with an apartment on the same lot.