The Land Value Tax as a Solution for Housing Affordability

A Vox explainer digs into one of the esoteric ideas of planning theory: a land tax.

2 minute read

March 7, 2022, 11:00 AM PST

By James Brasuell @CasualBrasuell


High-Rise Development

Roschetzky Photography / Shutterstock

Jerusalem Demsas writes to explain the potential of a land tax to potentially solve a number of fiscal problems while also creating an incentive for high value development.

Henry George first proposed a land tax in Progress and Poverty (1879), and the idea has hung around more esoteric economic discussions to this day—according to Demsas, the phrase "A land value tax would solve this" appears regularly on Twitter.

While proponents of a land value tax point to numerous fiscal challenges that could be solved with a land value tax, Demsas says one the idea offers a potentially straightforward solution for one of the country's biggest challenges: the cost of housing and the resulting lack of affordable options.

That crisis is caused, in part, by the failure to appropriately use valuable in-demand land for its best purpose. Millions of people want to live in New York City, Los Angeles, Washington, DC, or Seattle, but local tax regimes actually punish people for investing in their property. When people improve their property — either by adding a new room or building an entirely new structure like a multi-story apartment building, they’ll pay higher property taxes.

According to the article, the land tax isn't just an urban solution: small cities with vacant lots could also benefit from balancing the system of incentives. In both urban and more rural settings, according to the theory, under a land value tax, "property owners would be clamoring to be allowed to develop their land more intensely — leading to more homes being built."

The article includes a lot more explanation and links to the most prominent articles written on the subject in the past decade.

Friday, March 4, 2022 in Tax the Land

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Bird's eye view of manufactured home park.

Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing

Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?

March 25, 2025 - Shelterforce

U-Haul truck on road with blurred grassy roadside in background.

Americans May Be Stuck — But Why?

Americans are moving a lot less than they once did, and that is a problem. While Yoni Applebaum, in his highly-publicized article Stuck, gets the reasons badly wrong, it's still important to ask: why are we moving so much less than before?

March 27, 2025 - Alan Mallach

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

Downtown Los Angeles skyline viewed from a distance with freeway and trees in foreground.

Updating LA’s Tree Rules Could Bring More Shade to Underserved Neighborhoods

A new USC study finds that relaxing Los Angeles’ outdated tree planting guidelines could significantly expand urban tree canopy and reduce shade disparities in lower-income neighborhoods, though infrastructure investments are also needed.

7 hours ago - USC Dornsife

Aerial view of Claifornia aqueduct with green orchard on one side.

California's Canal Solar Projects Aim to Conserve Resources and Expand Clean Energy

California’s Project Nexus has begun generating electricity from solar panels installed over irrigation canals, with researchers and state agencies exploring statewide expansion to conserve water and boost clean energy production.

April 3 - Turlock Journal

Close-up of older woman's hands resting on white modern heating radiator mounted on wall indoors.

HHS Staff Cuts Gut Energy Assistance Program

The full staff of a federal program that distributes heating and cooling assistance for low-income families was laid off, jeopardizing the program’s operations.

April 3 - The New York Times