From the government's perspective it may be a wash. If rents go up, home values go up, and homes are also usually owned by natives, so from that perspective it'

From the government's perspective it may be a wash. If rents go up, home values go up, and homes are also usually owned by natives, so from that perspective it's a transfer from one group of natives to another. And if home values go up it means the government collects more revenue from property taxes and home value appreciation taxes.