Home owner and renter are both part of the society, lets say a% of home owners opt into short term rental and increase their income by b% and tax revenues go up by c%, that drives rents go up by d% and f% of renters are priced out, also the added tourist traffic support local economy by f%.

I do not see any analysis that even tries to obtain/study these numbers, measure the trade offs and evaluate the net impact on a society. I feel these are more emotional arguments than rational, seeming to stem from home owner must be richer, and so we got to help the renter. There's so much nuance, is it a small tourist town, mid tier city, big city, available housing supply, home owner and renter demographics - a small ski town might have lot of seasonal workers for half a year, renters might not even be locals in that case, obviously different in other places. Who are the home owners? locals, out of town investment home owners, corporations owning fleets of houses, how can there be one size fit all answer without evidence/data.