"Built enough" may sound like the same thing as "giving out housing for almost free", but it isn't. Also, cheap temporary emergency housing for a sudden extra burst of refugees may be inappropriate for permanent occupancy, I believe this is an example, it's certainly containerised/temporary *something*: https://maps.app.goo.gl/HUyQS6Sc1w1Y8GUH6?g_st=ic
That said, an idea has come to mind: UK and Italy have had schemes where a home can be purchased for £1/€1 under the condition the new owner repairs them (the repairs would cost 20-150k). Given some of the really bad stock I've seen in some searches, this may be a good idea for Germany too.
Last time I was in Germany I saw elderly people going through garbage bins in the park I sat at. I think you overestimate the safety net in Germany. In my European country the elderly sit at cafes drinking coffee, not going through bins.
Update:
Every street corner has a yellow garbage bin for recycling. That is where your plastic bottles go. Seems like a better system than having elderly going through bins.
Not OP but many people eligible for social benefits don't seek it, for all kinds of reasons (not knowing about it, pride, ideology, peer pressure, ...)
The government that runs the benefits programs. They make you jump through hoops to get any benefits. The first hoop is even knowing that a program exists that you qualify for.
Keep in mind that not every old person who searches garbage bins is actually poor. Some of them just have dementia. I personally know such people in my home town.