You'd still need more servers though. Presumably if it was instanced, the house instance would be spun up when you or someone else visits and spun down when you leave, so you need capacity for that - presumably during busy periods you may not be able to access your house if the instance server is congested (same thing happened with Inn rooms during the EW congestion as I recall). Plus you still need to store all the relevant data regarding house fixtures and fittings, colours, etc.
I'm sure on a per-house basis it would be less resource-intensive than the housing wards, but it still requires some hefty investment in additional server architecture.


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