Land (and rent seeking) need to be a bad investment. Building housing (and building anything in general, whether it be housing, businesses, families, etc) should be a good investment.

Right now, with earned income tax, we do the exact opposite. We punish the people that do things, and reward the rent seekers with tax breaks (1031 exchange/low land value tax rates/senior citizen discounts/etc). The proof is in the pudding, everyone wants to become a rent seeker, and this is what society will look like if that is the case.