That's largely been my observance as well. My SO has done a lot of feed the homeless work, and my best friend runs a medic/first-aid program to treat homeless. I haven't gone much, because it frankly breaks my heart to see. It's tough to even write about.
I don't think shipping people all over the country is a good solution... I do think that building a lot of cheap housing (the projected costs someone mentioned, like $1.4m per dwelling seems insane). Modular construction designs should be possible to deliver 1br or studio homes with a 3/4 bath and kitchenette for under $150k each relatively easily, including transport and final assembly.
It is really hard for me to understand that level of addiction or dissociation, but I've definitely seen it.