Robert, open steerage areas were in use at least as late as 1950. I can't reproduce it here, but the South Australian Maritime Museum has a photo of post-war migrants bound for Australia in steerage, just as in the 19th century. They are all male, clothing is hanging everywhere and it's generally a right mess. I guess if you were getting away from the wreckage of Europe anything would do. I think the practice died out pretty soon after 1950, at least in first world nations. Mind-boggling things are still seen in Africa and elsewhere.
Early plans for Titanic show a steerage, but the idea was scrapped and all passengers had cabins.
This sharing sleeping places with strangers would have been no novelty to many. In the late 1950s I travelled in shared sleepers on trains. For all I know, it may still happen.