> one can't generate any revenue from land and lots are limited to a single tenant - which seems to be the norm. Just because a system is at equilibrium does n

> one can't generate any revenue from land and lots are limited to a single tenant - which seems to be the norm. Just because a system is at equilibrium does not mean that a better equilibrium is impossible. There are significant advantages beyond unused plots. Incentives in general will change. The goal is not simply to repossess unused lots. Although you are correct that as a side effect, it does make for a much more efficient resource allocation. The other massive advantage is that because the supply of land is fixed, a land value tax has a unique property of having zero deadweight loss. This makes it the most efficient tax possible. Milton Friedman was in favor of it for this reason.