If they didn't have to force a kitchen and bathroom into each room they could have a little more space. The boarding house model of the early 20th century was on to something.
That's certainly an option. I live in a sharehouse in Tokyo. 15 men and women of different nationalities, each with a private room but sharing three toilets (one per floor), three "unit baths," and two sinks. There is a common kitchen and living/dining area.