This idea seems to be built on a notion that there are needs and that their are wants, and that we are only going to give enough to supply needs. But there are two major underlying problems with this.
First, even if we assume that needs and wants exist, you aren't going to have agreement on what falls in what category. For starters, is having children a need or a luxury? Is a clean place to live a need or a luxury? Is having a healthy food a need or a want?
Second, I'm not sure the division between needs and wants is even real. Yes, you'll die without food in a few weeks, die without water in a few days, and die without air in a few minutes, but what about something that increases ones likelihood of dying in a few years, but not any shorter? For example, a starving person can survive off a very poor diet for a much longer time than with no diet, but if they are missing vital nutrients, they will still eventually die. Or look at loneliness and the negative effects it has on people. You won't die within a year from lack of human contact, but your overall life expectancy will drop greatly (except for infants, who will die from lack of human contact, as shown in a few experiments which scientists are ethically banned from reproducing).
Note that it is not merely a question of competition of perfect substites. An apartment competes with a house, but also with a shared apartment, with living with family, with leaving the area. And note that a Basic Income quite directly increases the supply of "housing near some source of income".
Remember, part of demand is the amount people are willing and able to pay.
