We were in a tiny 1-bedroom apartment and it never occurred to me that my midwife would have any issues with it. We didn't talk to anyone in the apartment complex or any of our neighbors. We had only lived there six months and there was incredible turnover in that complex - there was only 1/8 apts with the same person in it when we moved out as had been there when we moved in 15 months before. But also, I wouldn't alert my neighbors of the fact that I may be having sex and that they should ignore any noises they hear, and I consider birthing noises to be pretty much the same thing.
Water-filled furniture is NOT the same thing as a birth pool. Don't leave it unattended (i.e.: if you need to transfer, make sure it's someone's job to empty the pool asap), but it's only going to be filled for maybe a day or two at most. Mine was only full for 4-5 hours. That is a completely different situation than a waterbed or aquarium that is there permanently and frequently left unattended.
If you feel comfortable with where you live and want to birth there, do it! Whether you live in an apartment, townhouse, trailer, or single-family home, it's your home and there shouldn't be any reason to not birth there if that's what you want.