diff --git a/api/api.go b/api/api.go
index a8f6ea724..bb3eba489 100644
--- a/api/api.go
+++ b/api/api.go
@@ -274,11 +274,17 @@ func (a *API) StartCodespace(ctx context.Context, token string, codespace *Codes
 	}
 
 	if resp.StatusCode != http.StatusOK {
-		// Error response is numeric code and/or string message, not JSON.
+		// Error response is typically a numeric code (not an error message, nor JSON).
 		if len(b) > 100 {
 			b = append(b[:97], "..."...)
 		}
-		return fmt.Errorf("failed to start codespace: %s", b)
+
+		if resp.StatusCode == http.StatusServiceUnavailable && strings.TrimSpace(string(b)) == "7" {
+			// HTTP 503 with error code 7 (EnvironmentNotShutdown) is benign.
+			// Ignore it.
+		} else {
+			return fmt.Errorf("failed to start codespace: %s", b)
+		}
 	}
 
 	return nil
diff --git a/cmd/ghcs/ssh.go b/cmd/ghcs/ssh.go
index 2b51c4cc1..e3b3e75ac 100644
--- a/cmd/ghcs/ssh.go
+++ b/cmd/ghcs/ssh.go
@@ -6,7 +6,6 @@ import (
 	"fmt"
 	"os"
 	"strings"
-	"time"
 
 	"github.com/github/ghcs/api"
 	"github.com/github/ghcs/cmd/ghcs/output"
@@ -173,8 +172,6 @@ func setupSSH(ctx context.Context, logger *output.Logger, terminal *liveshare.Te
 		return fmt.Errorf("error closing stream: %v", err)
 	}
 
-	time.Sleep(1 * time.Second)
-
 	return nil
 }