I'd agree on the benefits of providing housing, but you're probably not going to want to make it mandatory (what's the alternative? jail? that's wasteful) and you can damage a lot of property in a housing situation too (if not more).

So economically, there has to be a recognition that some people are going to give up on the system and decide to stop trying to please a brutal economic machine, and that some of them may even become bad actors, in order to develop a realistic plan.