Yes, land prices dominate. And who owns all that land? Not the goverbankment, but the people who are willing to work 2x50 hours per week to get the house with the 100 acre garden.
Land is a competitive good, land near commercial hubs is scarce and eventually goes to the highest earners in relative terms. If you want to cut working hours for everyone, the government has to mandate it - otherwise people will always be willing to work a smidgen more than you for the better house. The government here is part of the solution, not the problem. (Unless you are talking about municipal zoning and NIMBYism which is certainly part of the problem.)
I don't agree with this vision of people as slavish consumers. I think given the choice people would not work extra hours. If they did they could purchase a house. They would gain no advantage from buying multiple if we taxed land.
If people add more value I have no problem with them having a bigger house / more stuff.
I have a problem with being forced to work for my landlord.
