Up until recently my conures (Sun and Green Cheek) slept in their shared cage with a light sheet over. We have a one bedroom with a small bathroom and kitchen/living room, where the birds cages are. The conures are great at sleeping through our noise and talking but when we adopted our U2 Halo, we discovered that he NEEDS a consistent 12 hours of sleep to control his hormones. We have a smaller cage that would only work for sleep or travel bc its much smaller but it seems to have been a good change for him. My fiance works 2-11pm and gets home around midnight after riding his bike home, so he needs the living room and bathroom at a late hour and this was NOT okay with Halo. So his sleep cage is on a small table on the side of our bed and he settles down and sleeps immediately after we put him to bed. Sometimes he wakes temporarily when I come to bed but he settles down right away and drifts off again. In the morning if he wakes before me, which only happens on the weekend when we sleep in, he just bites softly on the bars until I get up and take him to his big cage. I usually give them all fresh breakfast and put music on then go back to sleep for a little longer if I can. Weekdays I'm out the door by 630 so if I do all that they generally keep themselves entertained and let daddy sleep
I hope that when we move next summer to a bigger house we can have a room dedicated to the birds for sleeping purposes, maybe put them in sleep cages in a guest room because I much prefer having day cages in common areas so that they can be around us and we can all communicate with them even if they're not out. The better quality of sleep in the last week since we started putting him in his sleep cage has made a noticable difference and his plucking and mating/dominance issues have shown improvement as well. We are very happy with our little U2 crazy chicken.