Imagining for a moment that air were a scarce commodity we had to bid for, people would purchase it regardless the price, and would be willing to borrow heavily to obtain it.
Shelter is likewise pretty necessary (though the hobos in my city manage to survive without it.) People do have more options when it comes to shelter; the two major ones are renting, and remaining with their parents. I can't speak for other places, but here, the vacancy rate is perpetually near zero, and renting is actually more expensive than mortgage payments-- that was what pushed me to buy.
But we weren't talking about reasons why housing has become so much more expensive, just the fact that it has. Sure, there's market factors at work, but those market factors have been working against people who are just entering the market for housing, and in favor of people who bought in a lot earlier. In short, no, people aren't really better off than ever.
You claim that people are better off than ever and that people are only complaining because of moving goalposts, but the truth is that there's a lot of economic factors working against people who are just reaching adulthood. The cost of education, housing, stagnant wages, globalization. Increased government debt that will virtually ensure that whatever old age security and pension plans exist in the future will be a shadow of what they presently are. People need to be saving more of their own money to take care of themselves in the future, because the generous programs the boomers made for themselves won't be around in the future. Unfortunately instead of saving they're trying to pay down their debt.
-k