I'm relocating to a very popular city and I've been told one of the reasons I haven't been getting responses is that I don't have a local address. I stay with close friends when visiting the city for job interviews, and they recommended I use their address on resumes/cover letters. Is this practice pretty typical, or will it come back to haunt me?
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Your close friends are generous to offer up their address, and this is one offer you should definitely accept. Borrowing a local address when you're planning to relocate is a very common practice — I personally used a friend's address when I was searching for a job on the verge of college graduation, and it hasn't come back to haunt me.
Even if you have solid plans of relocating to a new city, some employers are scared off by a non-local address because they don't want to deal with covering relocation costs. Aside from the expense, they know that it will be more complicated to arrange interviews with an out-of-area candidate and don't want to deal with the extra hassle. You're much more likely to be invited to interview if the potential employer doesn't think getting you there will be an obstacle in itself. Not only are you giving the impression that you're making it convenient for them to meet you, but you're also demonstrating your ties to the area.
Hopefully, employers will start responding to your resume in no time. Happy job hunting!