Homelessness is worse than debt, just to be clear. You can survive with debt, there is no risk of death. Homelessness can, and often is deadly. This is just a fact.
We are at, and even past running out of space that is in commute proximity to an economic zone capable of supporting a non-impoverished lifestyle for the VAST majority of citizens. There’s tons of space in the middle of no where, but that space isn’t useful to anyone because no one can support themselves there. I don’t mean “find work” support yourself (though that too), I mean “have a grocery store within an hour drive one way from your house” support yourself.
As for working under capitalism, you’re right, it still sucks, but you can choose where you work, and there are choices to be had pretty much everywhere. The same is not true of housing, especially with the rise of suburban sprawl. You can choose to work remotely for any business you want, but you can’t choose to “exist” remotely. You have to take up space somewhere. Sure there’s space in the middle of nowhere, but how will you buy gas for your car with no gas station, food to feed yourself with no grocery store. Most of the country is like this. That is the whole problem, you simply can’t survive outside of an economic zone of a certain size, and all the housing in that area is being hoarded. I’m not arguing against the evils of capitalism, but to claim that not being allowed to exist anywhere isn’t a bigger problem then “I’m not being paid what I’m worth” is just a misunderstanding of the problem.