1. Regulatory failure leads to a lack of reasonable real estate options in growing cities.
2. Striving young people want to move to the major cities for career reasons anyways.
3. Aspiring capitalists deploy capital to convert existing housing stock into microunits while charging a premium.
Nothing in this is communist at all.
Proper sharing would be a fully connected graph topology. Modern "sharing" is hub-and-spoke where the hub extracts rent on all transactions because they either made a website (lol, "tech company") or have absconded capital and sell it back to you (time limited) at a profit.
The connected network part was also similar because you have to go through these co-living space capitalist-hippy administrators to actually live in the co-living space. So some of the co-living spaces are co-living as defined by "you passed our landlord's test" but others are "everybody must like you to live here."
If this was relating to Uber, we'd also mention they are doing the entire "break local laws and hope city hall doesn't care" trick by introducing oversubscribed short term housing which is against city policy.
In 1951 Rand moved from Los Angeles to New York City, where she gathered a group of these admirers around her. This group (jokingly designated "The Collective") included future Federal Reserve Chairman Alan Greenspan.
Shame that these people didn't go "organic" and searched for the real deal in living in a real commune and not that synthetic one.