Is it permissible to proceed with applying for social housing apartments and take them out of necessity, or should one distance oneself from them and opt for renting despite its hardship?

It is not permissible to purchase apartments through an usurious contract as long as it is possible to secure housing through rent that does not cause unbearable hardship. For whoever fears Allah - He will make for him a way out and provide for him from where he does not expect. And whoever relies upon Allah - then He is sufficient for him.