Rising Real-estate prices and an Increasing Housing Shortage: An Unbalanced Housing Market?

Although more and more money is flowing into the real estate market, the housing shortage in urban areas is increasing. Especially the discrepancy between the supply and demand for "affordable" housing is growing. In the big cities and high-priced regions, construction activity is primarily focused on the completion of condominiums or expensive rental units, while too little low-cost housing is being built. Is greater government promotion or a relaxation of existing planning regulations the proper strategy for ensuring a sufficient supply of affordable housing?