This is more the kind of startup location that makes sense to me. Cheap living for those from out of town and around the clock contribution. It reminds me of the gaming company Code Masters which in the early 90s operated a series of portable trailer sheds in the back yard of the Darling brothers’ parent’s farm house near Gloucester in the UK. They leased these sheds out to independent coders who then contributed their efforts to projects like a row of bungalow occupants on the Universal back lot. Planning permission at that time, and maybe still, allowed you to do this as long as the location was a farm! All part of the fun. Toys there consisted of people clubbing together to buy a power boat as well as a hundred and one video games that were in development around the site.
Given the cost of living space in New York it surprises me that only a couple of startups have used residential space. Living costs are much more of an issue for people than office space and it would seem to kill two birds with one stone.
It’s literally a sweat shop but it’s a way of getting things done.