The governor inviting all the state's homeless to live in his home doesn't seem like a scalable solution to homelessness to me..

This is just lazy. The Democratic Party is a big tent for better or worse and therefore has a variety of ideologies and positions in it. A public option, renewing the Child Tax Credit, a corporate minimum tax and free community college are WELL within the middle of the current party.

I don't really think that is a correct analysis of the political alignment. The GOP is becoming more nationalist and less "classically liberal" by the day.

The Democratic Party on the other hand, in the modern era, has always had some significant Keynesian/interventionist elements. What party do you think you have to thank for the Housing Act (aka OG Section 8) in the first place?

The states and cities have built housing but not enough to fill the actual need. Unfortunately it's extremely difficult to get anything built in RI and MA due to a variety of reasons including NIMBYism in the "nice" areas.

The state and most cities aren't really in a fiscal position to start building large amounts of public housing, especially if it proves politically unpopular.