In theory, that would take rentals out of the ''vacation'' area... and create LTRs in the area of the primary home. Basically returning the market to ''normal''.
What we see with the STR model, is the primary home being occupied and the ''vacation'' home being rented for maximum income.
But what I think they are afraid of is supply is outstripping demand in several areas. Someone using a STR for holiday would go toward value... and that may not be what we generally think to be value.
Since I might be on holiday for only a week or two, and will most likely rent a boat for the few days that I wish to boat, do I need the STR to be ''on the lake''? Even within sight of the lake? That may lower the value of STR-financed lake homes; thus possibly lowering the value of all lake homes.
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