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https://www.city-data.com/city/Fremont-California.html
This happens when housing construction is constrained.
Fremont exists on a strip of land between the mountains and San Francisco Bay. It cannot expand outwards. It can only expand upwards.
https://earth.google.com/web/search/fremont/@37.59363502,-121.9914645,161.19919328a,9097.59119891d,35y,-4.42998245h,88.63834593t,0r/data=CnYaSBJCCiUweDgwOGZiZjQ2YjdlOGNhZjc6MHg4YWRhMzEzYjg5ZDg4OGQ0GcxHrYs2xkJAIWuYofFEf17AKgdmcmVtb250GAIgASImCiQJ1i4P4JTaQkAR8ae1kYPTQkAZ2AoAEvKMXsAhC_jRBDmSXsBCAggBQgIIAEoNCP___________wEQAA
That's what Fremont looks like. It is full of low-height residential buildings.
You want people to be in houses, then you're going to have to adjust zoning and planning restrictions to permit Fremont to grow upwards.
Don't do that, and people will simply bid what they are able and willing to bid to try to force someone else out of the limited supply of housing so that they can live there. Some people will not be able and willing, and those people won't get housing in Fremont. If you don't like that, then you need to remove restrictions on vertical growth.
I mean, I agree that it's unaffordable, and that building up is a solution to that, but homelessness is rarely caused by housing costs being too high.
Most people who can't afford the rising cost of living in an area either add roommates or move somewhere cheaper.
To end up in a tent in an encampment is almost always correlated with drug use or mental illness.
Which isn't to say we shouldn't take care of those people. We should. But lack of housing is almost never the limiting factor there.