Kids need parents that set boundaries not parents that are there friends. If he's a good kid help him find other arrangements but don't rubber stamp your 16 year old living with her boyfriend even if it's under your roof and watchful eye. Stick to the principle of not living together until you're married. She may later choose otherwise bit won't later blame you for allowing it when it goes south.

Tradition principles became traditional for a reason. They have generally proven over centuries to be the better way.

Bb