I guy I work with owned two condos in a development. The HOA passed a rule banning short term rentals. There were a lot of units being advertised on Airbnb and similar services so he put them on the market when he heard the rule was being proposed to beat the rush.

He managed to sell one at market but the second one didn't sell before all the other Airbnb landlords listed their places too. He had to take about 10% below market for the second one.

Now those two places are owner occupied, and one of them got a nice deal (I don't know about the ones sold by other people). And everything that sold in that area probably went for a little less for a while due to the glut on the market.

Making renting less profitable works. People aren't landlords because it's fun. They do it for the money. Take away the money and you have less landlords.