Long term (10+ years) it'll be addressed by the baby boomers dying off. The generation just entering college now is tiny - there's going to be a housing glut somewhere between 5-10 years from now.
This housing shortage could easily have been predicted by demographics - starting in 2003, Millenials started leaving their parents homes and forming households of their own, and starting around 2012 they entered peak house-buying years. The baby boomers are not dying off yet, and the generation that is dying off (the Silent Generation) is small. Thus, not many homes are entering the market for the number of new households being formed.
This housing shortage could easily have been predicted by demographics - starting in 2003, Millenials started leaving their parents homes and forming households of their own, and starting around 2012 they entered peak house-buying years. The baby boomers are not dying off yet, and the generation that is dying off (the Silent Generation) is small. Thus, not many homes are entering the market for the number of new households being formed.