Practically, to earn income in most parts of America, you need to own a car and pay rent on a single family home. That is a $800-$1000 additional expense versus living in a micro-studio and taking transit to work.
For someone on the margins, that is a huge and often insurmountable price of entry. Many can make do by, e.g., being housemates in a larger home to reduce the minimum expense. Folks on the margins are often not able to find others willing to live with them.
