> It shouldn't be legal to tell someone who owns a home that they cannot rent it out. We're not talking about someone running a business out of their home, where the zoning laws actually apply.
By that definition so are long-term rentals, or even home buying and selling. A Colorado court has ruled that there's no substantive difference between a renter who rents for one month or one week.
Subletting is not short term, and is rightly considered to be largely governed by the same laws as those that apply to rentals since the uses are so similar.
I honestly do not understand the willful ignorance in this thread. Short term rentals is commerce. Everyone knows it's commerce. When you say you think it isn't (or you don't understand how it could be) you sound like you're denying the earth goes around the sun. This isn't even a particularly nuanced area of permitted use laws (zoning) or the appropriate role of government. You are all basically advocating for elimination of all zoning and/or pretending it doesn't exist as a totally normal type of regulation in the US (and all over the world).
Of course they shut down lemonade stands. Especially if you tried to run a daily lemonade stand out of your front yard, staffed by people who don't live there.
They're legal because the government has not decided to make them illegal. If the government decides that your lemonade stand is a danger to public health, or that your stamp collection is a national patrimony and cannot leave the country, it will make new laws that enforce those decisions.
Short term rentals are a business, by definition.