Both are probably true, some people get homeless due to addiction, and lack of a home keeps them relapsing, while also creating a social environment where other types of homeless persons - the mentally or physically disabled, elders, evacuees etc. - can get into drugs.
For a dealer, a dense community of chronic addicts is a cashcow, a market they can serve with much lower risk vs. catering to suburban teenage parties.
For a dealer, a dense community of chronic addicts is a cashcow, a market they can serve with much lower risk vs. catering to suburban teenage parties.