During my time with YWAM (Youth With A Mission), I stayed in small communities over a 3-year period in consequently Norway, Germany, and Scotland. It was beneficial for my social skills, feelings of inclusion, ability to cooperate, and general well-being. I learned practical skills and was able to converse with other like minded individuals.
Man is a social creature, Western (individualistic) philosophy and participating in the rat race is unnatural and unhealthy. Communal living should be the status quo.
It’s also attractive from an economical point of view for obvious reasons.