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.
Of course, individuals (renters in this case) will vote for a policy that benefits them at the expense of everyone else.
Increasing regulation does the opposite of making it easier to build new housing.
I do agree that current residents should be able to prioritize their own needs, but that rarely results in additional housing stock being built.
"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?