Call it meaningless if you want, but this is a policy that renters getting priced out of their housing markets will eagerly vote for. And prioritizing existing residents over newcomers feels just to me. Focus on making it easier to build new housing instead of getting pissy about the safety net.
"Newcomers" to the rental market include every person who already lives in that city and hasn't moved out of their parents' house yet. Why should they be penalized even more for not being born sooner?