Although not all returning expats or potential returning expats are retired many of course are.
For this group the biggest economic advantage if over 65 is usually Medicare.
So if they are at an economic place where the housing situation is going to mean great hardship that still can be balanced with that health care advantage.
That said I think lower income and or wealth returning retired expats that have been away for many years even decades often face different challenges than those that never left.
Namely,
The US has changed a lot. Reverse culture shock on top of the economic shock.
More likely to have a very limited or even no support network in the US.
Less likely to own real estate than even lower income / wealth non expats.
More likely to have no US state drivers license or even any license.
So for a retired expat that is leaving Thailand, third countries may sometimes mean a better life, even without Medicare.
Finding bang for the buck as far as housing and living expenses again.
In the US decent places to live where you don't need a car are very rare. In typical third country retiring expat options they are very common.
For those that lack a network in the US then they aren't losing much in that regard moving to a third country. Also its common to be able to hire lower cost fixers to assist with initial setup such as banking, utilities, etc.