Property wealth–equity in general, frankly–isn’t taxable like income is (and neither is capital gains). If you hold property, you can use that equity to buy more property and accumulate more wealth, but since it isn’t income, it isn’t taxed by government the same way.
Yes, property taxes are a thing, and yes, we do tax capital gains, but not like we tax income or consumption. Allowing wealth and equity to snowball takes that money and marks it “off limits” to government. So government revenues drop and services decay.
I’d also add that our tax regime is incredibly unfair to labour, especially skilled labour. If you’re a high-earning worker, you’re taxed much more than someone who just lets their money accumulate through passive rent-seeking. If you wonder why Canada has a brain-drain issue, this is a good reason: it’s more advantageous to be a landlord than it is to be a doctor, engineer or other highly-paid, highly skilled professional.