In addition to the drawbacks outlined in other responses, human living situations are too unpredictable to make that kind of arrangement desirable. Inevitably, there will be a plumbing issue because someone left a bath running, or a medical emergency causes unforeseen traffic challenges, or a fire breaks out.

The more delivery productivity you stack on top of this infrastructure, the bigger the impact from an unforeseen issue... and humans can introduce a lot of unforeseen issues.