A leading psychologist says co-living developments could, in theory, be good for people's mental health.
One of the co-living blocks has been given the go-ahead in Dún Laoghaire in Dublin.
It will be made up of 208 single bedrooms with pull-down beds and kitchenettes and a number of communal living spaces.
Chartered Psychologist, Alison Keating, says there could be benefits to renting in a co-living building if it is done properly.
"If it was rolled out really well I think it could - conceptually - work for a diverse group where we could actually look at combatting loneliness which is quite a silent epidemic," said Ms Keating.
"My concern is that obviously you need enough personal space as well.
"That is really important and I don't think there is any need to compromise on that."
An online petition has been launched by against the Dún Laoghaire development by People Before Profit TD Richard Boyd Barrett.
Reacting to the news that planning permission had been granted Mr Boyd Barrett called the decision "disgraceful" and "shocking".
Mr Boyd Barrett said that the proposed plans offer people "unaffordable box rooms with pull out beds".
He said that introducing co-living will not have an impact on the current housing crisis saying that developers are "exploiting" the situation for profit.
The Dublin TD called on Housing Minister Eoghan Murphy to "outlaw these type of units and scrap the Strategic Housing Development legislation as it is being used by developers to fast-track plans for purely profit driven development that contribute nothing to the much-needed provision of homes".