Compromised Instanced Housing
I know we've been at this since housing was first introduced almost 10 yrs ago, but please consider this compromise, especially in light of recent events.
Please consider adding 1 (ONLY 1) instanced housing ward. Instance each house with a little glowy ball to click to enter at the entrance of each house. Allow a selection menu to show each inhabitant. Once clicking the name, it teleports to an instanced yard / outside of the house that the inhabitant has customized. Outside of the instanced zone, keep houses / yards generic.
This would also offer a very high traffic / highly populated neighborhood. Also, everyone would get to choose their desired location.
I understand this takes away the fun outside appeal of everyone getting to see the house appearance, but this would be the compromise. The pros vs cons are so heavily in the favor of pros. At least players would get to enjoy all housing aspects and no one is artificially blocked from an entire aspect of the game.
Please consider this alternative