Between the anger heaped on border patrol (exemplified by the new Terminator film e.g.), exploring consent and sex with animals, and now this, we're living in a libertarian golden age!
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This place is so far from libertarian it's not even funny. Housing regulations here make it near impossible to build sufficient housing. My ideal policies let people build what they need to to keep up with demand.
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But for the more "free market anarchist" libertarians the tent cities are a positive defiance of state authority.
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I mean... kinda yeah? The state fucked people's ability to have affordable housing, so people going 'fuck the state' and building their own housing in whatever way they can seems kinda appropriate.
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So then yea, libertarian paradise. California - often derided as a nanny state - is the upholder of libertarianism, not its bete noire.