Boiling frog syndrome. https://www.zerohedge.com/personal-finance/its-cozy-la-imports-are-paying-800month-live-coffin
Another outrage-stimulating fluff piece. Find some morons doing stupid shit and "profile" them as if this was something normal... this is how the media drives clicks nowadays. 4 bedroom/3 bath houses in North Hollywood - a rather decent neighborhood - are renting for ~$3500, so there's your ~$800/month for four people with no need to "live in a coffin". Ditto 5 bedroom/3 bath for the same price in Lake Balboa. That took 30 seconds of looking at Zillow; not exactly in-depth research. You could find a hell of a lot lower prices with a little research, especially if you're the "starving artist" type.
Capsules are a Japanese invention. I spent a day as a tourist in one. Most of the people are old men who'd otherwise be homeless. These existed way before millennials and are only found in cities with very expensive real estate.