I think this general sort of approach is highly flawed due to the difficulty you'd find in allocating and expecting new property demand. I, personally, would love to see a working command economy and look forward to the day we can actually accomplish one though technology... but we're not quite there yet.
In the mean time... I have difficulty pointing out specific reasons this always fails due to the weird involvement of racism in public housing in the US tainting my primary experience of such a system, but I believe it does have flaws even if implemented in a manner that isn't intentionally trying to ghettoize portions of a city.
There really isn't any difficulty in allocating resources.
I'm talking about eliminating real estate investors, not property ownership by end-users. There would still be a fine market economy but it would be much less common for someone to be buying real estate they weren't intending to use themselves.
Command economies are ridiculous because human nature. They aren't stable because they involve a small number of people being in control of resource allocation and the benefits for "cheating" and making those decisions to benefit yourself and your goals make it far too likely that the power will be abused.
In the mean time... I have difficulty pointing out specific reasons this always fails due to the weird involvement of racism in public housing in the US tainting my primary experience of such a system, but I believe it does have flaws even if implemented in a manner that isn't intentionally trying to ghettoize portions of a city.