At the extreme end, with absolutely zero zoning restrictions, you could build capsule hotels for people to live in, driving the price for a tiny tiny room to, say $300/month. With a minimum wage of $15, you'd need to only work 20 hours a month to afford that. Double it to account for taxes. Figure they have EBT for food. Assume they're able to use a platform like Reflex to pick up retail shifts (like driving for Uber but for retail).

With zero zoning, there's no telling how bad the capsule to bathroom ratio would be, which would make them unlivable, but as a thought experiment, it says that there is some price point where it's possible, so the real question is to find what's practical. If the choice is between a plastic tent exposed to the elements with no water, sewage or heating/AC, electricity, and an uncomfortably small hotel room with a shared bathroom, I'd rather the hotel room.

Having a roof above one's head should be a right, not a privilege. It becomes even more of a privilege when people view real estate as investment. They want to profit. For example, in Toronto, there are lots of apartments that are 'unrentable' because they were so badly designed that it's awful. They were built for investors to sell. Think of a studio costing 600k. Who wants to pay 600k for a studio? Like, where would someone be in life that they can spend 600k? I'd assume the majority would be married. They won't want a studio. Values are reversed. It's profit over welfare, unfortunately.

Lots of people that went to shelters prefer the streets because of several issues with people in the shelter. Violence, substance abuse, theft, etc. It's not like they prefer to be on the streets but sometimes that's the best option.

I'm not saying that this is the case for everyone on the streets; I'm saying that it is a fact that it happens and some people prefer the streets over shelters because of that.