Not necessarily disagreeing with you but homelessness issue won't be solved by simply moving people into rust belt. Even if people were to be moved... how would we fix the issue that caused them to become homeless (and helpless)?
Part of the reason why homelessness is so visible in places like Oakland because the governing body in cali cities tend to decriminalize homelessness. I've also known homeless in east coast go down to the southern states during the winter... only to come back up north during the summer.
We also need to consider the fact that homelessness is multi-facted. There are folks who are employed but still gets classified as homeless due to high CoL.