I think about this kind of thing with relation to airbnb in expensive cities, what is the ultimate free market end state? Anywhere where humans create unique culture and beauty will be hollowed out and given over to global tourists with money. That forces the locals far away from the interesting center core. Thinking about it over decades I envision it as almost like a Game of Life pattern where those pushed out eventually create a new interesting core while the old hollowed out core deteriorates into disney-fied caricature of itself. The cycle then repeats as the global tourist money chases the new hotness. Could it really be a cycle? I'm not sure. The tourist hotspots look mostly like negative-sum culture destruction to me.
I grew up in a sleepy coastal town in California. Nothing special except beaches really. A racetrack where thoroughbreds races annually. Beautiful, but nice and sleepy. And then as California grew and any beach town became a tier 1 locale, my hometown became more and more expensive to live in. For people in service careers, it became impossible, so they moved inland and commuted.
Now, unless you managed to buy a house very early, you're priced out. The amount of money in the town is crazy, and I would estimate that the amount of 1%ers is over 20% of the population. Compare this back to the early 70s and there wasn't nearly the same amount of variance in wealth.
It makes me sad that my childhood home has changed so much, but I don't think there's a way to prevent this from happening.
