Air b and b and housing shortage; sale of our land to foreign investors

A family member lives in a popular mountain town in NC. Many of the houses that do reach the market are being used for travel rentals, leaving little for people who would like to use a house themselves. Will the market eventually get saturated when there are more vacation rental houses than houses used by families?
I was looking for a hotel in Abingdon VA when i saw blocks of cottage type house owned by a real estate company, (or hotel), renting them out nightly!
I also read in Forbes that Black-rock and Vanguard were buying up whole subdivisions!
I realize that building of houses died during covid, but it appears there is more to the shortage than we are being told.
Also, I would like to see if Clark has addressed foreign ownership of about 35 million acres in US, and if it is actual ownership or a lease of sort.
Please comment

Building barely slowed in this area during covid, never heard any area prohibited building.

that is good information. If building continued during the pandemic the shortage must be due to other reasons. I know western NC has had sharp increases in houses, and many in that area are buying just to do vacation rentals, making it difficult for those who want to occupy homes, as prices are escalated, and it is very difficult to find a house.

Air B&B prices have risen so much I no longer find it economical to use over hotels. Think they are pricing rents on houses above market and rentals will drop.

Most houses rented that way around my neighborhood are rented for boisterous parties, and neighbors resent them.