Land prices in Germany have risen sharply in recent decades: Between 2001 and 2021 alone, the price index for building land has increased more than two and a half times. This leads to inequality, as people in urban areas in particular are heavily burdened by housing costs. Housing shortages, gentrification and urban densification are consequences of land price trends. Would the introduction of a land value tax make speculation less attractive and incentivise better use of land?
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