It quite literally does solve the problem of people being unsheltered. It doesn’t solve the problem of people being effectively unable to care for themselves, but that’s a separate (and intertwined) problem from homelessness itself. You don't need to solve those problems at a shelter per se, and from what I recall only about 1/3 of homeless people are too addicted/mentally ill to care for themselves (these are just the most visibly homeless and the most likely to sleep rough), in which case this actually seems like a preferable arrangement compared to a group shelter for the 2/3 of homeless who literally just need a place to live.

> We can’t handle the upkeep

The main benefit of these is that they are effectively disposable, and they’re dispersed enough that you don’t have to deal with one person starting a flood or fire and wrecking a whole building.

If I were ever to become homeless I would much rather live in a tiny home than in a shelter, even if I had to go to a shelter or gym or something to take showers and interact with social workers. I feel like I’d never feel a sense of safety, privacy or autonomy in a shelter.