There is broad agreement that the US housing market needs more homes. There is also broad agreement that affordability needs to improve. But it doesn't necessarily follow that we should build more affordable homes.

Stepping up housing production is a multiyear process, which means we should be thinking about what the market will look like in 2030, not what it looks like now. By then, middle-aged millennials in America’s largest generation will be at their peak earning potential, seeking luxury digs or to trade up rather than entry-level or affordable homes. Understanding and catering to these changing needs will ensure the right kind of supply and, counterintuitively perhaps, improve overall affordability.