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.
Another possibility that would reduce the effective cost of housing would be small scale distributed manufacturing (I'm thinking Drexler/Merkle nanotech here). That would mean that most goods would not need to travel, they would be "printed" locally. There are exceptions for goods which require uncommon atoms, which would still need transport. (To be a bit more explicit: I'm trying to weaken the "near other people" restriction. As is, a lot of what we exchange with other people is information, and we ship that around globally today....
From Mike Darwn's Chronopause, an essay titled "Would You Like Another Plate of This?", discussing people's attitudes to life:
Conclusion, graphs, and references in article. As usual, I recommend reading Chronopause.com as Darwin has many good articles; to quickly link a few: