Late Stage Capitalism
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Although I support the idea, simplifying the problem to one of only supply and demand doesn't address the core issues of mental health, substance abuse and physical disabilities that might have in great part contributed to the individual being unhoused. Along with affordable housing and free temporary housing we need to also provide free resources to help individuals get back on their feet (as a matter of speaking).
But housing does solve someone being homeless...
Not if they're immediately kicked out again because of damage to the home or because they're intolerable and/or dangerous to the neighbours. And that's not even accounting for the people who have more invisible mental health issues that still prevent them from holding a job and paying their rent/mortgage without permanent government assistance. If you want to fix homelessness you need to address mental health as well as housing. Neither is optional, it needs to be both.