Yes, agreed, it's time to revisit land use decisions that were made back when the population of Oregon was half what it is today.

Why not a different property tax approach to housing, especially inside town and the Urban growth Boundary. Perhaps a non linear property tax adjustment that considered square footage per person rather than just location and overall house value would encourage sustainablity.

A square foot tax surcharge would reward small living and penalize huge urban houses with few inhabitants. For example,  two people living in a 1200 square foot house occupy 600 square feet apiece. If they up-sized into a 3600 sq ft house with 3 times the space per person, they'd pay say 5 times more square foot tax rather than 3. Conversely, if two people downsized from a 3600 ft house into a 1200 ft house, they'd pay 5 times less square foot tax. If  6 people lived in a 3600 square foot house, there would be no square footage surcharge.

Taxes are a way to encourage sustainability.