I think instances housing is a dumb idea to me imo.
For one, everybody will just buy a large house, two it kills the whole neighborhood feeling and instead we get a lonely space to ourselves nobody will even see unless they know you and teleports to your house.

I think people need to stop gunning for larges and popular places like shiro if you're that depressed for a house.
Even on balmung there were tons of mediums and smells in goblet and even smalls in shiro for a few days.