While this topic is far from new, the housing system does lock a lot of people out from content they would enjoy. It also encourages people to hang on to houses they don't particularly want because they know they're not going to get another any time soon if they change their mind.

[B]Why not just move to a less populated worldB] Like many simple solutions, this one ignores the many good reasons people have for staying put. There is no guarantee that you'll get a house if you do move and leaving friends behind is not something many people want to do. For people who want to join the friends or who already have an established group of friends on a particular world, moving just for the chance of getting a house is not practical.

The biggest plus I can see for instanced houses is that the system will be far more flexible than the one we have at present. With the ward system, the most populated worlds have far more issues than less populated worlds, even apartments are unavailable on some. With instanced houses provided alongside the wards, supply could more easily tailored to match demand.

The fact that every character now has the opportunity to have their very own instanced island suggests that providing personal instanced houses should also be possible.