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It's a good and necessary foundation but certainly not all of the equation. Mental health and addiction services are also necessary. Simply housing people will help a good chunk of the homeless population but that is largely the unseen homeless population that couch surfs and/or stays in their cars. They are very at risk of falling into the chronically homeless which takes a lot more resources to fix.
"Housing first" is the idea that most of life falling apart is from losing your most basic need: shelter.
It's stressful to keep a job, distancing from friends and dates and family, if you don't have a home and smell weird
Instead, when we give people homes without conditions, they can breath a sigh of relief, and have enough spoons to tackle the rest of the problems.
As pointed out, or as might need to be pointed out, nobody builds something this expensive without considering the auxiliary social services to help people get out of the situation for the next occupant.
It's the most cost effective thing you can do, anything else is cruel, bureaucratic, and inefficient.
If you already have a job and relationships and suddenly end up unhoused, the community letting that spiral to your job firing you is a failing of the whole town. It doesn't have to, all we need is to fill those empty homes...