So, now you not only displace people from that location you want the displacement to casecade across the rental market forcing large numbers of people to have a worse commute and or pay more in rent. Perhaps some people could possibly have a major problem with that idea.
PS: You can actually just search locations on Airbnb it’s rather concentrated magnifying this impact.
If by offering short term rentals you take 30% of the rentals off the market (which may only be 100 apartments), that has a huge impact. Rental prices are all about marginal demand.
There are other factors as well — there is a de facto price floor due to section 8 prevailing rent. Because of factors like the “just build” doesn’t work, as profitable new construction is high-end, and the older stock tends to turn into defacto hotels.