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To add a bit more detail to your comment, this form of housing used to exist in the from of single room occupancy (SRO) buildings, where people would rent a single room and share bathroom and kitchen spaces. Reformers and planners started efforts to ban this form of housing starting around the early 20th century. From Wikipedia:
This fits into a set of ideas about urban planning that were popular in the 20th century but have (at least in my opinion) contributed to housing unaffordability and reduced the diversity and vitality of many of America's cities.