This will prevent developers from keeping old poor habits around of bad land use
When it comes to housing the US seems to suffer some kind of disability that makes it impossible to not be tempted to steer towards a planned economy.
modern city planners have realized that car centric cities does not scale. ie. if you want to city that scales to Tokyo levels it needs mostly to rely on transit schemes.
The US has an (alas, quite new) history of overindexing on cars. moves like this will drive the development faster than the market alone.
however, parallel to this, tax for roads in cities should be increased and passed on to car owners. (in Denmark we pay 150% tax on cars. and that is on top of the 25% VAT we already pay) - right now car owners are being handed prime land almost for free in the US.
I think the problem goes further though, but maybe once the fears of "congestion" are gone the fear of shadows and "becoming Manhattan" won't need able to hold us back
Isn't that exactly the whole point of capitalism?
If people with money want strawberries, they buy more strawberries. Price of strawberries goes up. Farmers who could choose to grow strawberries or some other thing decide that they want to grow strawberries because the price is high. More strawberries are grown.
The people who have the money to buy the strawberries indirectly caused more strawberries to be created.
So yeah, the people with the money decide what gets created. This is a good thing.
Rather the inverse; they have more money because they haven't spent it on things yet.
Although it's not a good general metaphor because strawberries are a consumption good and not used for your income like a car is.