I think there are two separate issues and combining them into one stops any real solution for either.

One is an addiction and mental health issue. This is a medical issue and needs to be treated as such.

The second is a wealth inequality issue, where working people cannot afford decent housing. This is a housing issue.

By combining the issues, it causes bad solutions. For example, in San Francisco when Gavin Newsom was Mayor, he took money from social programs and used it for housing the homeless. The homeless had housing, but no money to buy drugs. The intent was to get people off the streets so they wouldn't panhandle. The effect was to have many drug users die alone in these rooms and apartments. It didn't get people off the streets as they needed to panhandle more to get money for drugs.

I think to make the distinction between the two groups people are using the term "unhoused" as a working person that doesn't have a home.