Houses there are so cheap that this kind of plan would probably work as long as you had enough human will and intention to make it happen. As far as I can tell, that is where these things break down. It's hard for groups to form this kind of collective dynamic and trust in the absence of some cohering force - religion, a focal point like a cult leader, or similar influences.
 Well, OK, two syllables.
There are some cool people who are broke and want to live communally, but there are also some people who do that because they don't have their lives together.