Lack of accommodation in major urban areas is likely to lead to serous social outcomes. While many argue that this problem can be tackled by government involvements only, I disagree that they can overcome this issue on their own.
On the other hand, government interventions play huge roles on this occasion. Firstly, only authorities have legal power to changing zoning law. For example, governments can rezone industrial areas into residential zones or allow private sectors to construct multi-storey apartments. As a result, more housing space will be available for citizens. Secondly, private companies usually focus on their own profit by charging higher prices or interest rates while potential residents try to purchase in installments. Without rules of state, such as regulating rent prices and making newly-built houses affordable enough, impoverished families tend to struggle more, leading to social inequality.
However, relying only on state is not the only solution to fix this crisis. To start with, a growing number of people believe that private sector involvement is a one way to generate enough accommodation. A primary argument is that the government itself is rarely able to provide enough funding to build homes, especially ones meeting the needs and preferences of the people. With tax deduction or other financial incentives, for instance, companies are more likely to construct this sort of buildings. Furthermore, private developers are considered to be better at innovation. Private firms usually use modern construction methods, which significantly cuts down construction costs make houses less expensive for individuals to purchase.
In conclusion, despite the fact that this issue may be overcome by actions that can be taken by states like introducing new laws related to lack of space and financial regulating prices of residential properties for the favour of underprivileged families, I firmly believe that these are not the only solutions. In order to completely handle this situation in urban areas, governments should with private firms.