>In an unregulated capitalist system, supply increases to meet demand. But demand comes from capital, not from the housing needs of individuals. In one tier of

>In an unregulated capitalist system, supply increases to meet demand. But demand comes from capital, not from the housing needs of individuals. In one tier of the economy, a house is a home; for another, that same house is an investment. The poor cannot afford to outbid the wealthy for housing, and the gap is widening at an accelerating pace. That's why building more houses won't solve the problem in the long term, because the rich are getting wealthier much faster than the poor (or middle class), and any increase in supply will go to serve their demand for rental property.