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Martha's Vineyard, Malibu, both Hamptons etc have even higher housing costs yet no homeless. It appears you've found a correlation without causation.
I think we saw recently why Martha's Vinyard has little or no homeless
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If the drug addicted were capable of operating their own cities, they already would be. They obviously need a non drug addicted population to support them.
Certainly - and said drug cities would have billions poured into them, and outside assistance. Still cheaper than prisons.
Only if you don't value human life. People die in these cities' drug camps. Tens of thousands per year.
But the problem is overstated because these don't need to be expensive supermax prisons. More like a chainlink fence and ankle-bracelets for everyone.
We can't afford to not incarcerate junkies because of the harms to the cities, their residents, and the junkies themselves.