So, if by some feat of governmental magic, my city were able to eliminate the homelessness problem, I might be less happy because I wouldn't see as much suffering around me?
Sometimes YouTube shows me videos of natural disasters (I have a strong interest in the extremes of physics, weather, nature, etc. generally) and some of those videos feature widespread human suffering on display. When I see these videos, I remember that my life is actually pretty great despite the minor nuisances that may have me feeling ticked off that day. Couldn't seeing homelessness around you could remind you how lucky you are that you don't suffer from the conditions that lead to homelessness?