This sounds like the quick way to create a nation of renters. Otherwise, people would be priced out of their homes in short order by the ever increasing LVT. Which of course, isn't a bug, but the feature of Georgism (a family of 4 living making a home there probably won't permanently be the most efficient form of land use on that plot)
Renters are already paying for the land value, so if a renter can afford a property, so to can a homeowner. Under a Land Value Tax it is even easier to be a homeowner, as you no longer have a huge upfront cost of buying the land. As we saw in PA, current homeowners saw a tax decrease because so much vacant land went up for sale. A larger land tax would see even more positive effects. A larger land tax would also allow us to start reducing sales and income taxes, since that would end up simply increasing land values by more than they tax.
Since this incentivizes increasing the housing supply, zoning would quickly change from exclusionary to abundant. With those new homes being built, people would choose to move from their worn-down house into something new and better, and their current property would eventually have the same fate. It's not kicking people who love their homes out, it's letting people leave their homes for better ones.
You would still have apartments. You would still have AirBNB's. You would still have co-ops. You would still have houses.
Any tax money in excess of what is currently paid would be currently would simply be given back as a citizen's dividend, unless that tax money could be better spent on infrastructure, infrastructure that would pay for itself in higher land taxes that would yield even more land tax share dividends.
Precisely. A nation of renters rather than a two tiered class system with land owners at the top of the economic hierarchy and elderly renters at the very bottom.
