But what good does it do a local if the price of their house explodes? Less than none (less because their property tax goes up), until they sell. But once they sell, if they keep the gains, then they can't buy another house locally. So the only way the increase in price helps locals is when they quit being a local.

If this is happening to your town, the town has a choice: The newcomers are coming. Are they going to live alongside the long term locals, or are they going to replace them? Are the locals going to get rich and leave, or are they going to remain poor and stay? "Get rich and stay" is not an option.