

This seems true only on short time scales, and in corporate work structures. On long time scales and with more collaborative, voluntary work structures, a group of people working together and supporting each other will almost certainly outperform a disorganized collection of non-communicative individuals. We can see this is true because, yaknow, society exists.
The issue is that you presume the options are either public housing or a tent. You are missing the other option, which is simply allowing developers to build more housing on their own and removing the ability to speculate on land value, forcing land owners to earn an income only by the benefit their land provides to others. Zoning reform, good urban infrastructure, and Georgist tax policy do this without necessitating terrible concrete commie blocks everywhere