Which option correctly relates population growth and housing capacity?

Correct answer: If population grows faster than housing supply, the housing shortage may worsen

The direct answer is A. Housing planning depends on comparing the number of people or households needing homes with the supply and capacity of available housing. Step one: population growth can create additional households or increase the number of people seeking accommodation. Step two: if construction and housing services do not keep pace, demand becomes greater than supply. Step three: this imbalance may produce shortages, overcrowding, higher rents or pressure on informal settlements, depending on local conditions. Option A is correct because it states this demand-supply relationship without claiming that the result is automatic everywhere. Option B is wrong because existing housing does not expand merely because the population grows; new land, finance, infrastructure and construction are needed. Option C is wrong because more people generally create additional housing needs. Option D is too absolute and reverses the likely pressure: a falling population does not necessarily increase shortage and may reduce demand. Memory cue: compare housing demand with housing supply, not population size alone.