I agree, the core of the issue that real estate investors are incentivized to act this way. Whatever makes them more money is going to win every time, which is why when the things that make them the most money are pushing costs and problems onto the public (and the housing market in general) we need regulations put in place to restore order.

I imagine a lot of the problems could be improved with zoning changes limiting the amount of properties that can be rented out for short terms, and by shoring up tenants rights to cover gaps in protections for renters.