As with living with any other kind of animal, there should not be a problem, so long as the animals are well cared for and treated kindly.

Unfortunately, chickens in the city all too often get into trouble:

http://farmsanctuary.org/rescue/rescues/2008/harlem_chick ....

Cf. also the not very promising description of the Yonkers store where chickens and other small animals are sold, slaughtered and butchered, in the article on the newly devised and controversial Hechsher Tzedek (Kosher certification of righteousness) in the last Sunday NY Times Magazine, the "Tom Philpott Issue":

http://www.nytimes.com/2008/10/12/magazine/12kosher-t.htm ....

We are hearing more and more stories of animals kept in confinement in and around NYC, in shoddy surroundings, destined to be slaughtered.  This is NOT a good development.