Are STRs fueling the wrong kind of construction?

This article from Domain talks about how Melbourne is building mainly 1 and 2br apartments, fine for today’s buyers but not so much when people start wanting families. Clearly the huge demand for short-term rentals in Melbourne and the rapid rise of professional Airbnbers also has an impact on this, as these are the unit types most tourists prefer too. It’s a vicious cycle – More STRs mean more demand for 1 and 2br places which raises the price for people already thinking of someplace in the suburbs, creating apartment hotels in what should be vibrant urban community.