Housing shortfall, costs and affordability

[taylortbb]

Yes, it would be good to have housing options for that -- but at the current price levels I don't think they would be affordable anyway. I believe most people choose to have roommates more because of the cost than because of the lack of housing availability.

You're describing supply and demand. Demand for housing exceeds the supply, so prices are bid up until an sufficient numbers of purchasers are removed from the market.

We'll never get market housing below construction cost (in a growing city), but right now it's far above construction cost. The gap would evaporate if there was adequate supply, as buyers wouldn't be forced to bid up properties. Each step up in price is a few more people that can't afford their own place, and have to resort to roommates, which is the market equalizing supply and demand.