AirBnB is currently exploring partnership with property development companies to create new business models. They hope to allow property developers to offer their new developments on the short term rental market, to tourists, rather than to local residents on a long term basis.
However, it appears one property developer is already one step ahead of them. His new apartment building, for which he knocked down three existing housing, will, it appears, be rented out on short term rental sites for a significant portion of the year. Unfortunately, the city government is unable to do anything on the issue.
This small example illustrates the ongoing issues short term letting and AirBnB is creating in the housing market.
See the Guardian article (link) for more details.