Everyone's entitled to their perspective @Pete0 in Los Angeles, but raising prices in times of more demand is an ethical issue in a capitalist economy where long term housing is at a crisis point. Ultimately THAT is what drives people away.
There is no reason to raise prices when all of this will actually increase occupancy levels filling empty rooms for those who remain in the STR market, whether its the "vintage home-share" airbnb's that built this platform or the hotel developers who will...build more to meet the increased demand.
I used to commute 3 hours each way into LA for work because it was less expensive to live further away (as I sacrificed family time sitting in my car in an area where efficient public transit is also in short supply (which is all about the politics of far more expensive personal transport).
The tourists won't stop coming to LA. It will always be a magnet...and when the people who work there can't afford to live there, that''s when things get stupid...and we're already there.
From where I'm sitting, LA made a wise choice, and when and if the time comes that there's a housing surplus, the STR's can rise again.