Well a lot of people who want homes are expecting to be getting short-term rental revenue that would cover their mortgage payments at least. If they fail to do that then they might not want the home.
This is in turn dramatically impacts the price of the home.
I bought a home last year during peak sales season in a great neighborhood in a major tourist town at a very reasonable price that had been on the market nearly a week before I made my offer. How? Because my HOA explicitly forbids me from using the home as a STVR, which kept most interested buyers away. The desire to capitalize the house in the future is a major factor in rising home prices. I can do a long term rental, but no Airbnb.
Want to dramatically reduce upward pressure? Start passing laws that severely punish STVR activity and prices will come down.
Also the numbers do not exactly support your statement: https://www.construction-physics.com/p/is-there-a-housing-sh...
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