> The problem with redistribution is that it cannot overcome an artificial cap on supply.
Yes it can.
Tax the unimproved value of the land, not the people who live and work there. "Redistribute" the wealth generated by the people who work in the city to the people who work in the city, not to the landlords and property owners. Make it pointless to sit and hoard property while you wait for other people to make it more valuable.
I can assure you that property owners, in high cost of living areas, would love to "improve" their land, by building lots of tall buildings on that land, if it were legal to do so.
Its the laws that prevent them from acting on their incentives.
Yes it can.
Tax the unimproved value of the land, not the people who live and work there. "Redistribute" the wealth generated by the people who work in the city to the people who work in the city, not to the landlords and property owners. Make it pointless to sit and hoard property while you wait for other people to make it more valuable.
Suddenly, the incentives are better aligned.