The potential development benefits of a land value tax could be blocked by zoning restrictions.

"The analysis presented above shows that if the city were to adopt a land value tax in the context of its current restrictive land use practices, this new tax regime would be unlikely to increase the city’s housing supply. It would likely generate higher tax revenues from existing properties but would not act as an incentive for developing more intensively in large swaths in D.C. currently set aside for residential use."

theoretical