Proooobably stated somewhere here by someone else, but the game does tell you about the auto demolition via the Resident Caretaker (which I thought you had to talk to in order to unlock teleporting there; might have them mixed up with the enthusiast). When you click on "Land Ownership" followed by "What happens if I abandon my estate?" you get the following:
https://i.gyazo.com/072789d00dc47bc6...b589f61ddb.png
Either way, upon entering the residential area, you get a pop-up explaining the area. In that area, it says to go visit the Residential Caretaker for additional information about housing.