Lloyd Jones Capital CEO Chris Finlay sent out an open letter last week responding to Harvard University’s annual study of rental housing.

According to the study, renters account for 43 million out of 116 million total US households, raising concerns supply won’t meet demand.

“Renters now represent 37% of all households, the highest number since the mid-1960s,” Finlay wrote. “That’s a lot of renters, and they need decent housing.”

But this increasing demand for rental units has pushed prices higher, and new additions to the market are primarily units priced above median rent levels, GlobeSt reports.

Clyde Holland, CEO of Holland Partner Group, says policymakers must create a partnership between government and the private sector to address the affordable housing crisis.

He proposed local governments, among other things, defer taxes to developers to entice them to build more appropriately-priced apartments. [GS]