we are already in a "housing crisis" that will only escalate rapidly as pressure from the net-influx of people moving in compresses living space. this is what ikea is talking about in the first minute of this video (which at one point was the link): https://ikea.today/ikea-explores-future-living-for-the-many/
your mental framework of "why would I, a wealthy person who can afford more, want this?" is basically a mistake of making it about you. its not.
The places with a "housing crisis" are uber-wealthy neighborhoods or cities like SF or London, the crisis is not caused by incoming refugees but by high salaries, and yeah, it's rich people who live in those tiny spaces. Comparatively, poor people live in more affordable neighborhoods.
https://www.citymetric.com/skylines/mapping-uk-s-housing-wea...
Honestly - the risk of a fire in your own apartment is drastically higher than the risk of it being engulfed in a fire caused outside of it.