Whether someone lives in private property or social housing they are entitled to privacy. They are entitled to some level of dignity in their private lives.
While reality dictates that this is not always possible (refugee camps, asylum detention centres being extreme examples), the State is obliged to pursue policies that foster the rights of its citizens to a dignified manner. It should not pursue a policy that diminishes those rights. That is why private rooms in hotels and hostels are used for families instead of imposing families in on top of each other and the chaos that would eventually ensue.
See post 163. Plenty of private homeowners need to rent out rooms to pay their mortgage. Should they have their mortgages paid for?