Personally, I would also be more inclined to work on a market where you have fewer rentals available. 

One way or another, they are building their net worth.Building net worth is how you may possibly retire with fewer worries.

The process sounds complex and time consuming, and can someone leverage the time for something that's more rewarding?

Permits are intended to protect the consumer.   

Volatile interest rates today due to the consumer inflation index report.

While smaller towns may be more affordable, they could have fewer tenants or slower property value increases.

Fewer buyers and lower demand.

The average consumer is some what aware of these layoff trends, inflation, higher interest rates, and higher home prices.

First, I want to address the question of rental arbitrage vs. buy and hold STRs:In my experience buying the real estate (even if it results in fewer units) is almost always better than rental arbitrage.

In other words, fewer lawsuits but harder ones.Multifamily - Many of the issues you mention vary widely depending on the state where you do business