The cost of living here is about 1/2 of the USA, with rents about 1/4. The unemployment rate is about 5%.
Homelessness is very, very low (to the point of near invisibility) and mostly limited to illegal immigrants.
The thing that seems to make homelessness a non-issue here is the tolerance of ad-hoc construction. This leads to neighbourhoods where construction is really low cost / quality, but people are housed.
I don’t really understand why these neighbourhoods don’t devolve into hotbeds of violent crime as I would expect them to in the USA, but they mostly don’t.
Mostly, the construction tends to improve over time, and the neighbourhoods often gradually metamorphosize into more contemporary and inviting areas with vibrant small businesses and elegant homes.
I often wonder if it’s cultural, as poverty is not seen as failure but rather a temporary condition to be transcended as possible?