For centuries people lived in extended families, but people would rather live in their own home. Even if they have to borrow someone else's home and pay rent. My daughter and her husband live with his grandparents for a few years and used that time to pay off their college loans and save up to put down a big down payment on a home.

Their monthly payments are quite reasonable, but it was all predicated on extended family living for several years. If Americans want to go back to that model, it will eliminate the housing shortage overnight.

Interestingly, this country has so much vacant land, that in many parts of the country houses are simply priced against what it costs to build a new home and rents priced against the corresponding mortgage payment.

Whether one wants to rent or buy, is simply a matter of whether you save enough to buy a house and whether buying a house is the best use of that money.