I realize that fur a lot of people, nothing that does not happen in a major city is impirtsnt but a lot of people live in small towns. In fact, generally speaking, resort communities, vacation destination spots are often in or near small towns in scenic areas. People go there to escape their hectic lives and enjoy a slowed down pace. And nature. I’m lucky: my state has a lot of parks within very easy driving distance from my house but I still like to go stay in different areas. So do lots of people. People put up with living in destination spots because of the generally slower pace and beautiful settings, even when it means they earn less money: they choose quality of life over status and stress.
You have a wildly inaccurate impression of the percent of people who live in small towns.
As fior whether housing that is converted to rental properties ( vacation or otherwise) are now being used for their best purpose: Only if you think of housing as something to generate profit for….someone, perhaps in another state or country —and drives the cost of housing for permanent residents up without doing anything to increase wages for local people. It happens when small farmers are taxed off of their land, when college students ( or their parents) are willing to pay stupid amounts of money fur substandard apartments carved out of family homes, displacing residents and removing from the housing market ( rental or to own) homes for local residents, and drives the cost of rent or home ownership past what many local people, people with roots going back generations in the community can afford. People who are forced to move to other places for work or for more affordable housing lose the resource of having family close by. You may not find it important but if you had kids or if you turn 70 or 75, having family close by is an extremely valuable asset.
I'm thinking of land, not housing per se. And when you force land into a lesser use than ideal society overall bears
more costs. The harm you inflict exceeds the benefit you gain--it's just the harm is diffuse.
I think that’s more important than increasing the wealth of landlords and commercial property owners.
Local owners care about the quality of life in their communities. Distant property owners only care of their property taxes go up. And they are not shy about lobbying local officials to keep their rates down-and their profits up.
Distant property owners can't vote, local officials won't be paying much attention to them.