The Georgist argument is that the problem is property taxes aren't based solely on land value, and this creates excessive deadweight loss from taxation. https://en.wikipedia.org/wiki/Georgism

Under a system of pure land value taxes, an empty lot downtown would be taxed at the same rate as the highrise next to it, and taxed much higher than an empty lot in the outskirts—a huge incentive to put that empty lot to more productive use.

The proliferation of parking lots is a regulatory/zoning issue.