A secondary point of something like an LVT is to encourage density, since you get %0 taxation on the building itself, so it can afford to be more expensive. What uses less land, less energy and requires less miles of pipe, wiring and roads to service? A high rise with mass transit train service. A 50 story building on the same size of land next door to a 5 story building will have an approx 10x overall lower tax rate per sqft.

Land developers and people would naturally become economically incentivized to live in apartments as a result, unless they live somewhere somewhat rural already.