Thesis: Housing can be affordable to the purchaser and profitable to the developer. For example, a finished studio apartment could be available at $700/mo, or a three-bed at $1300/mo, and the developer who builds it will consider the ROI on the project/investment to be exceptional.
The need to do something tends to trump the need to understand what needs to be done. And without data, anyone who does anything is free to claim success.
- Angus Deaton, The Great Escape
Housing, broadly, is often considered a political issue, to be fixed by politicians.
I'll be quoating broadly from a recent seminal book by Urban Economist Alain Bertaud, specifically from Chapter 6: Affordability (p 219).