[devalier]

With the current system, home owners have every incentive to block new housing. New housing makes their own asset less scarce, and thus less valuable. The home-owner receives zero benefit from the new construction.

With a shareholder system, home owners also have a dividend paying share in the city government. The government pays dividends out of the profits of property taxes. New construction increases property taxes, since new high rises pay a lot more tax than old row homes or vacant blocks. Thus, the owner-shareholder will also gain money from new construction. Conceivably, the city could charge a supplementary "new construction" tax to make the numbers balance out so that home owners would always net gain from new construction. This might not be perfect, the surcharge would discourage building to some extent, but it would be a lot better than the state of affairs right now.