A little price gouging helps with incentivising forward planning.

A lot of price gouging raises the costs of enforcing property rights (a cost usually socialised by the private owner), and creates risk and fragility for the social structure.

Where to draw the line and how to operationalise the decision is a vexed point. 

 Yeah, at some point, the property owner will expect other people to show up and defend himself and his property from the angry mob. Whether they bother to respond will depend upon how the property owner had been behaving.