We live in a finite world, but almost all of humanities improvements have come not from using more stuff, but from using the same stuff more efficiently. To be clear, I'm not saying that we aren't using more stuff, we very obviously are, but merely that the majority of improvement in quality of life has come from increases in efficiency. There is no indication that we are anywhere near the end of those efficiency gains.

To your point of housing: that is the most clear example of a thing that is artificially constrained by policy. The reason there are housing shortages has absolutely nothing to do with resource constraints and everything to do with terrible policy decisions.