L.A. would be more successful if it bussed its homeless to San Diego; San Francisco; Portland, OR; and Seattle, WA.
Cost of housing and cost of living is becoming a greater problem in Dem areas because of their NIMBY anti-growth policies. More housing will could help prices it was bought by primary resident families instead of investors, who'll rent them out.
There was a great missed opportunity to grow the middle class during the 2007-2009 financial crisis and its aftermath.
In the wake of the 1980s/early 1990s housing bust, the FDIC Resolution Trust Company sold forclosed homes to first-time homebuyers and primary residence families at firesale prices. Those homeowners would use those homes to accumulate wealth throughout the 1990s and early 2000s, growing the middle class via real estate appreciation.
In the wake of the 2007-2009 Financial Crisis, many foreclosed properties were sold to Pirate Equity investors, who went on to rent the properties. This took affordable housing opportunities away from primary resident families and exacerbated wealth inequality.
Making more housing supply available to the market for primary resident families will help; but, it will not fix the mental health and addiction issues that homeless residents have.