Would you agree to live in the equivalent of student housing if the rent or prices were lower? If you had less space and shared bathrooms but gained an inner-city location, would it matter to you? I'm not sure. For me, I don't think I need my shower and toilet to be *in* my house as long as it's in the same building.
When you think about it, this is kind of a step between a share house and your own house. In a shared rental situation, you get your own room, but you have to make do with one kitchen, one lounge and one or two bathrooms. In your own house, you get all of those things to yourself, but for a higher price. There may be room in the middle for independent living with some shared facilities, but more available than just at universities.
Then again, plenty of people will not be willing to give up their ensuites and the privilege of shuffling naked to the toilet in the middle of the night. One day, we may see that arrangement as the "first class" equivalent of living spaces, compared to economy (share housing) and business class (student housing). I've actually never lived in either a share house or student housing, though, so maybe I don't know what I'm talking about.
Mokalus of Borg
PS - For me, it would remind me of church camp.
PPS - And as long as it's clean, what's the harm?