One time I had this project in Switzerland and my co-worker, who also travelled there, figured he'd save money if he rented a bunk bed in illegal (due to density) quarters.
Terrible experience, which got him fired eventually because he quickly lost steam due to having to share a tiny room with three other people.
I on the other hand moistened every Swiss Frank banknote with tears, but splurged thrice the amount on a proper room and survived until the end of my involvement in that project.
You suggested that flophouses are worse than a proper room.
Both of these things can be true.
The "modern" urbanism (flophouses, shoebox-sized apartments, 15-minute don-you-dare-to-walk-out neighborhoods) is leading only to decay of the country. Evidence: it absolutely helped to elect Trump.