The stress of it is making hotels seem quite appealing to lots of travelers and after one horrible experience (for example, weird cameras in unit, or weird owner, etc) many are saying "no more Airbnb". 

A constant stream of properties, that aren't horrible deals is best.

I had to ban one of their "contractors" from working on my properties due to a pattern of horrible work.

The home was bought from a flipper who did a horrible job.

Fast forward 3 months and he has only brought me 2 applications, both of which were tenants without a stable job and horrible credit. 

TLDR: what a horrible overstep by HOA that I assume was voted on?

We had a horrible experience dealing with them.

Unless, I guess, you picked a horrible market everyone is leaving.

They work for a company who pays the rent because they are TDY, their credit is horrible, they are afraid of all the paperwork and big banks and would rather deal with a one page lease agreement and someone they "know", they plan on having kids and want to wait to find the "perfect" home, their parents always rented instead of bought, they manufacture or sell drugs and they move a lot, and/or they are just stupid.

The city is horribly mismanaged and the constituents keep electing morons to run it and make bad decisions.