I think it's a decent solution for some. A small private space. I'll note though that it is rather inefficient in land use. Many of the residents will need a car as well as they get back on their feet. Building these is closer to suburban sprawl in the form of a mini-mobile home park, which is not terrible, as I said it will be a decent solution for some.

I'd be curious as to the construction costs and land use for 99 of these tiny homes vs. building apartment blocks/condos closer into transit and work. Granted I was curious and a quick Google show $800,000 for 880 ft^2 1 bed, 1 bath condo in Vancouver.