The argument has always been one of aesthetics -- mobile home parks have an unfortunate reputation for being eyesores; and in a state that relies on it's natural beauty to fuel the number one industry of tourism, there is always much caution towards anything that even hints that it may detract from that beauty.There are a few "unofficial" tiny house communities on the island. 

As @Nathan Gesner had said; after covid opened up, there was a sudden rush of people who wanted to travel and caused a spike in tourism which has since died down.

This kind of stuff doesnt happen in Thailand because they depend so much on tourism and are trying to encourage westerners to retire there.

Those who have been skirting by and not paying their taxes will now have to pay their fair share whether they like it or not, providing more tax revenue for marketing efforts to further drive tourism. 

As @Brooklyn McCarty mentioned earlier, Gulf Shores is very reliable for income at least 6, usually 8 months out of the year.When my wife and I were getting started, we decided to invest in the Smokies due to mountain markets usually maintaining tourism for more around 10 months out of the year.

We picked ours up In 2016 - 2 years after Hurricane Odile (good time to buy) and I am sure there are deals to be had as business has ground to a halt with Covid and the economy is heavily dependent on tourism. 

So it appears that tourism might be slowing a bit.  

My family and I got here about three years ago (moved closer to family), and I have since worked with many couples who have found their way here for either a primary or investment property.SLO is a great place to buy because prices (comparatively) are lower, quality of life is much higher- and yes as someone else noted- slower, but there is high demand for LTR, MTR, and STR year round because of the weather, colleges, three hospitals, and tourism. 

First would be to not follow the crowd on choosing a market - do your own research and find a secondary (less expensive) market that has a big tourism draw. 

In the Smoky Mountains we are heavily dependent on tourism, and yet only some local banks will lend on these construction projects.