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How is that term better than "homeless people"
I think the logic is that the latter is saying that being homeless is part of who they are as a person, whereas the former sees them as regular people who are currently experiencing homelessness. It's like how people are shifting away from saying "drug addict," and saying things like "person addicted to drugs" or saying "undocumented" instead of "illegal" as it's less dehumanizing.
It's a small, subtle difference, but I get it.
This is it exactly. It's known as "person-first" or "people-first" language, and it's a way to be kind toward people with how one uses words. Not a bad habit to get into.
It isn't, unhoused is the best I've heard personally.
Both makes it clear that the problem is housing and acknowledges that the "homeless" often do have homes of a sort.
The phrase is trying to emphasize that being unhoused is a temporary condition that can be remedied but it's just too unwieldy in conversation to do anything but annoy people.