There is no right or wrong answer to this question, for it is a personal one. Every person is different, so what may work for you, may not work for others. Personally, I don't think one in their late 30's should be living with friends in a small house. This description reminds me of my college days, where we would all be at a house partying from morning to night.
It was fun in those teen days, but now even as a late twenty year old, I don't enjoy that atmosphere. I could imagine as a late 30 year I wouldn't be either. For me, this age is the time one should be settled in their career and family. I rather be in a home with my children than with friends.
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