I grew up in a socialist society - indeed, the very one that you mention.

You're right that you wouldn't get your pick of where to live in most cases.

But you're wrong that they wouldn't supply you with some living space right away, if the one you were living on is gone. It would be a shitty living space more likely than not (e.g. a communal apartment), but you'd have a roof over your head for sure.