[chrisaycock]

If I understand your first complaint, it's that short-term rentals increase the cost to buy real estate in a touristy location.

I believe a more accurate way to phrase this is that the short-term rental market provides a more accurate valuation of the property.

High prices are complaint only for the buyer; the seller will be glad that his condo is now valued correctly.

[hvass]

How is a one night/one week rental a 'more accurate' valuation? I don't get it.

[chrisaycock]

@ChuckFrank said that buying property for the purpose of short-term rentals is responsible for "artificially increasing housing costs for residents". I was just pointing out that the cost increase wasn't artificial; the property value was intrinsically worth more than the market rate before short-term rentals were common.

[olalonde]

Regulations distort true market prices.

[eftpotrm]

And 'true markets' distort communities.

Anecdotally there's a significant problem in the UK with some rural regions becoming significantly hotels for the wealthy. People like them so buy properties as second homes, maybe to live in a 5-10 days a month at maximum and sometimes far less.

The work available locally can't support the prices such customers are willing and able to pay, so the community becomes significantly weighted towards the old (who bought before the prices rose) and the absentee second home owner. This starts reducing the demand for local services (shops, schools, public transport) through a lower active population which makes the community less and less viable for full time living and....

'True markets' may optimise for supply and demand but they don't always for maximum societal good.