Most LVT advocates would be in favor of letting these kinds of policies be more market driven.

But say there is an urban area that is 60% parking, by default LVT would probably make that uneconomical and the land owners would be incentivized to redevelop or sell.

A concrete example is I used to work at a warehouse in Boston as a teen that had hundreds of parking spaces… in one of the most housing constrained cities in the whole country in relatively prime real estate. I hope that lot gets turned into condos or something it would be a huge win for the city.