You're talking about investment demand, not the rental market. The two are mostly unrelated. Because most investment properties are made available to tenants si

You're talking about investment demand, not the rental market. The two are mostly unrelated. Because most investment properties are made available to tenants since investors want to make money. Even if 20% aren't available because of AirBnB, all you have to do is build more and that 20% that's missing will be quickly dwarfed by new housing. What you've done is a very common mistake: the conflation of property buying with property renting. The two markets have very different dynamics, and rent is much easier to address by simply increasing supply of housing. High rents are the most urgent problem to address. It's harder to make everyone a property owner but at least don't crush them under the weight of rent. We're lucky that it's easy to address rents by increasing supply.