James Schloemer is CEO of Continental Properties Co. and chairman of the National Multifamily Housing Council, explains the causes and outlines the solutions.

What do you see as the source of the U.S. housing shortage?

The housing shortage has occurred over a long period of time with multiple factors leading to its current state. One often overlooked factor is the role that a decline in average household size has played to increase housing needs. In 1975, average household size was 2.94 persons and in 2022 it was 2.6 persons. In other words, we needed 13 percent more housing units in 2022 to house the same number of people as in 1975. However, the principal factor is affordability, and there are several root causes to the housing affordability challenge.

What are the main factors driving the current housing affordability crisis?

Affordability is a function of cost and capacity to pay. When housing costs rise faster than