I’m already doing this with a set of friends in a big city with decent public transportation (relative to the world).
We all share a two story two flat. It’s quite fun, and my mental health is great. The big “but” is that it’s unlikely to last because people value different things. Most of us are doing this arrangement because it’s ridiculously inexpensive compared to other forms of housing. One has already moved out to live with his girlfriend, and another is probably going to move to another city.
This is of course ignoring the other very real problems: job prospects for industries are not uniform across cities (you may have friends in another industry that is in decline for your local)… etc.
I wouldn’t mind a return to communal apartments, with a dining hall, and a lounge away from the property manager and the entrance. But it’s doubtful very many people will ever use those facilities (when you have more interesting stuff to do outside the complex, or inside your own room, why settle for the third place?). The culture of friendship is also lacking in my current country (U.S.), and communal values are nonexistent.