Is building more homes the only answer?


When the economic times are bad. People end up stuck for for years. This was issue with all the small apartments they built in the 90s.

One of the trends of the housing crisis, internationally is a lack of mobility, being able to trade up or down. Or even change location.

So a multi bedroom apartment or house is more flexible in how it can be used than single room properties. Some people prefer to give themselves those options.
 
It can be hard to move on from any accommodation that is too small. I don't see that as being a reason to not build studio apartments.

No. But its just why people buy with spare capacity in case they need it in the future.
 
Okay, I was thinking more of young people renting studio apartments.