Welfare state would be if the state took over half the rent payments, for example. Building more houses, that are not owned by the government is examplatory of a planned economy and the aspect of doing it to give more negotiating power to the average worker is a communistic idea.
I did not interpret his comment that way. With the original Post there were two things highlighted to be wrong. One of which the commenter above adressed. He did not justify any actions other than forcing removal of all clothing during a strip search.