The problem you are not recognizing is people are using homes that are not occupied by the homeowner and renting it daily to different people.  The idea is you rent your home when you are on vacation or out of town.  Most of the time however you live there.  Anything else is not a principal residence and would be considered a hotel or B&B which should be paying the applicable fees and taxes.  This policy will help because they won't be able to just buy houses and rent them out, they would have actually have to live there "most of the time", meaning they couldn't rent it out "most of the time".