While I'm not fully on board with this idea, I do think it could help some people out. When I got my first job out of college, I definitely couldn't afford to live anywhere aside from my parents house. All my friends were in the same boat and even with our meager salaries together, we could not afford to get an apparent together. It took us 3-4 years out of college to have the salary to be able to come together and get an apartment. But what if you moved to a new place and don't have friends to share with? What if you just... Don't have friends or have some reason you can't live with others? This is a great solution for that. My brother was in a situation recently where he felt stuck in a relationship with his batshit crazy girlfriend because he couldn't afford to be on his own and would have to move in with our parents if they broke up. It eventually worked out and he has an apartment all his own, but I feel he could have removed himself from that relationship sooner if there was a cheap option like this for him to use temporarily.

A lot of American municipalities have banned a lot of the cheap and small apartments that could house working people. Offer it as an option; it seems better than sleeping on the streets.