Not being one to memorize what I can easily lookup I was reading the help for the useradd command. The --btrfs-subvolume-home switch looked interesting.
useradd -m --btrfs-subvolume-home me2
btrfs subvolume list /
ID 256 gen 160 top level 5 path home
ID 257 gen 173 top level 5 path var
ID 258 gen 162 top level 5 path root
ID 259 gen 124 top level 257 path var/lib/portables
ID 260 gen 162 top level 256 path home/me2
ls -ldZ /home /home/me2
drwxr-xr-x. 1 root root system_u:object_r:home_root_t:s0 18 May 17 19:17 /home
drwx------. 1 me2 me2 system_u:object_r:unlabeled_t:s0 64 May 17 19:17 /home/me2
This results in a home directory for me2 being inaccessible by the user me2.
restorecon -R /home
ls -ldZ /home /home/ss
drwxr-xr-x. 1 root root system_u:object_r:home_root_t:s0 18 May 17 19:17 /home
drwx------. 1 me2 me2 system_u:object_r:user_home_dir_t:s0 64 May 17 19:17 /home/me2
With the labels restored access works.
Is this expected behavior?