Can tighter rules on short stay rentals help the long term market?

A town has too many rental rooms being used for short stays, which hurts regular homes and hotels.

Imagine your town is like a big toy box. In this toy box, there are long-term toys, like the ones you keep for weeks or months, these are like hotels and regular houses that people live in or stay at for longer time periods. Then there are short-term toys, like the ones you take out just for a few days or nights, such as short stay rentals.

If too many kids in the town start taking out short-term toys all the time, it means there aren’t enough long-term toys left for others to use. This can make the toy box feel crowded and less fun for everyone, some regular homes might even have to leave the toy box because they don't get chosen as much.

Now, if the town decides to make tighter rules on short stay rentals, like limiting how many times a short-term toy can be used, it could help give more space in the toy box for the long-term toys. That means hotels and homes might have a better chance of being picked more often, making the whole town (or toy box) happier in the long term.

So, tighter rules on short stay rentals are like setting limits on how many kids can take out short-term toys, helping keep the toy box balanced for everyone.