> I move to a cheap, small town. I embed myself in the community and help build it up over decades. And then, at the peak popularity, in part due to my presence, I am forced out, because someone who has never been here says that they would like to live here.
Why would you be forced out? Yes, taxes on the underlying land would increase because it is more valuable, but you would be able to move into a new property in the same community, as housing would increase in density. Now if you don't want to live in a denser community, that's fine, but you don't really have a right to prevent the densification.
It sounds to me like GP’s concern is that their LVT would go up (across the entire town) due to popularity and become unaffordable (forcing them out economically), rather than being concerned with increasing density.
So I would need to sell the 2 BR single family home I've lived in for 30 years, and move to some other part of town to live in a 1BR apartment, because someone from some other part of the country can pay more in tax for the property I've lived on?
Why would you be forced out? Yes, taxes on the underlying land would increase because it is more valuable, but you would be able to move into a new property in the same community, as housing would increase in density. Now if you don't want to live in a denser community, that's fine, but you don't really have a right to prevent the densification.