This sort of "logic" was used to justify efforts like Prop 13 in California. It creates a massive windfall to incumbents and little more. It also ignores the most basic of solutions to solving this "problem", if it even is a problem:

You can provide land tax subsidies or rebates to targeted individuals (eg the disabled, the retired) without providing massive tax breaks to everyone else.

What's more, this system makes it impossible for, say, retired people to downsize or move because that resets their tax base to a much higher level on their new property (in the Prop 13 case).