It seems likely also to have to do with the decision [0] to convert 20% of the city’s stock of hotels to shelters even as demand rebounded post-COVID. Primarily the stock on the cheaper end of the market.
[0] https://www.nytimes.com/2024/05/25/nyregion/hotels-prices-mi...?
We aren’t talking about war crimes, so yeah this all sounds completely normal and kind of a truism?
Why would or should a local polity put the interests of outsiders ahead of those of its own citizens, especially with regards to housing?
Perhaps it's a city where tourism is incredibly important for prosperity. Maybe making things harder on tourists will result in problems for local businesses, or lower tax revenue that impacts the services the city can provide to its residents.
And maybe not -- but it's plausible, and city officials need to take this sort of thing into account.