In the 1880s Shantytowns were pretty common, and compared to those, these people live in a much better house. Hell, most of the frontier towns would look worse than this.

Yeah, they probably don't have heating other than woodfires, water or plumbing, but that's the same for a huge portion of the population anywhere in the 1880s. Of course, the big city comes with big city problems like disease, water, food, fuel that frontier towns didn't have to deal with (as much)