I agree that the situation can be improved that way, though it's arguable how much it runs against the problem that packing people tightly together has the effect of increasing discomfort and severely lowering status. But even with optimistic assumptions, I think it's still the case that housing can never become non-scarce the way food and clothing could (and to a large degree already have). There is in principle no limit to how cheaply mass-produced stuff can be cranked out, Moore's law-style, but this clearly can't work anywhere as effectively for housing, even with very optimistic assumptions.