Here's a great discussion on Chris Hayes' show about innovation (or the lack thereof) in housing products in the United States:
It's very good that the show focuses on the fact that the home mortgage interest tax deduction is far and away the biggest element of federal housing policy in the United States. Of course I'd further add that the bulk of housing policy happens at the local and municipal level, and it generally consists of rules that simply mandate the construction of low-density detached single-family homes. You can say what you want about "the American Dream" but a huge element of the American Dream is that people dream of living in structures that are legal to build. Until you can build more apartments in the places where housing is expensive, then you won't have more people living in apartments.
Not coincidentally, this is a great opportunity to pre-order your copy of THE RENT IS TOO DAMN HIGH.