Kansas

Hypothesis.

I also live in an area where tourists visit (DC metro) and where there are developers aplenty. I could offer an anecdote based on my neighborhood that would support a hypothesis that allowing lots of tenants per SFH drives down homeowner demand and home value (and that’s why current homeowners demand zoning restrictions) and further propose that while investor demand could offset some of it, it doesn’t offset all of it (or that that could depend on several other factors). But without data, we have no way to know whether I’m right or wrong.

One factor in my neighborhood is that the rental costs for SFHs typically don’t cover even most of the ownership costs. Investors here want to build apartment complexes where zoning allows it.

In my neighborhood, several owners rent out their homes or part of them, and often this violates zoning. But as long as everyone behaves well, and there aren’t too many such houses, people look the other way.