Personally with a $425k budget I would be looking to invest in a pool home in Largo area or I would be buying a bungalow in the Ybor/Seminole Heights area of Tampa.

Local governments may have tighter restrictions.

Prices go up because of government restrictions, lockdowns, regulations, Disrupting Supply chains causing prices to increase 2.

I also think it likely that ADU rules continue to get less restrictive.  

Combine rent control with restrictive zoning, or a nightmare permitting process to build, and you've got the recipe for an incredibly easy path to becoming a multimillionaire.

They are stating that because the address I want to list on Airbnb is not my primary residence, I only qualify for a non-primary residence STR permit, which restricts rentals to a maximum of 90 days per calendar year.Has anyone else encountered this issue before?

NYC is the obvious central point but the restrictions seem to be covering northern NJ and most of Westchester now.

They could be looking at the space to check legal egress, ceiling heights, window location and size, fire separation between units/hazardous areas (like boiler rooms, etc.) or a whole host of other things.

Where these restrictions exist, they are recorded on the title.

I'd also pull the records at the registry of deeds to see if any restrictions are attached to the unit.