Yes its a real question. "By definition those existing homes, no longer owned by out of state people, would be owned by in state people."  Walk us though exactly how and why an "existing unit" now owned by an outsider will be transformed into a residence for a local. They own it why should they sell it? Who they gonna sell it to, the locals can't afford it,
.
Also tell us why "if we magically did that one year, the demand would catch up the very next year". Where's all this demand coming from? Remember we're discouraging and  banning outside investors.
.
You say the profit margin is absurdly high. How high is it? How high should it be? What's outside money and how does it make elected officials beholden to outside interests?  You think local money won't make elected officials beholden?  What difference does it make if they're beholder to evil locals or evil outsiders?