“So if you have a place to live”
This is good only if your mortgage is paid off.
Unlikely. Empty houses + lots of homeless people = government housing.
Actually, there was a similar situation after WWII, in which a lot of temporary housing areas went up all over the place. Often they were Quonset huts, which finally went the way after the Levittown development created the new suburban commercial housing project. By then, many veterans and their families could afford veterans mortgages.
What it will become is the government leasing out empty homes with minimal terms, that will have long term ARMs for when the economy improves.