To what extent does the number of families in a building change with the law vs. just evolving as the environment evolves? I'm currently staying temporarily in the bay area, and it seems that many homes here have been "converted" from single family homes to full-time airbnb's with extra bedrooms and bathrooms tacked on in any way that they can manage. Functionally it's probably common for a suburban neighborhood to be a bunch of "4, 5, 6-plexes" when appearing to be a typical suburb of single family homes on the outside.
full-time airbnb's with extra bedrooms and bathrooms tacked on in any way that they can
... which is exactly a risk of killing "zoning" (capacity limits) restrictions. It's now far riskier for a property owner to rent to traditional tenants (especially with the threat of Section 8 acceptance becoming mandatory) than to cash out into the AirBnB market.