That will depend on SE. Those of us who have played other MMOs with top notch instanced housing know it doesn't have to be that way.
The interiors here already are instanced as well and serve to hold good sized crowds. No one seems to have a problem with mass inviting now. The ongoing complaint is "why won't blacklist keep people I don't want in my house out of it?" (which is something we've also seen solved by the instanced housing in other MMOs).
The possible sticking point for venues would be what happens to overflow when the instanced venue reaches capacity. Right now they congregate outside the house and the surrounding area of the ward. If the system gets set up similar to apartments (go to a main entrance and select the instance you want to enter), it would continue to work out well. I've pointed out in past threads that the original 3 housing districts have paths that lead away from the plots but dead end with no purpose. Those would be perfect for entrances to new instanced housing. Empyreum has a few spots scattered around that are similar - lots of attention to detail but no reason for players to go there unless they're exploring. There's a spot in Shiro could also be used for the same purpose and possibly others I haven't noticed because I've never spent that much time exploring around Shiro to look at detail.
If we're going to be fair, there is nothing to do with friends in current housing either. Somehow, that doesn't seem to bother most of the player base.
What Island Sanctuary suffers from is the small selection of outdoor furnishings we have, which offers very little in the way of seating and interesting lighting. We don't have any ability to create a home that suits our style, we're limited to the Cozy Cabin options.
There's also that annoying mechanical rodent problem in the Hideaway that we can't get rid of. Talk about a mood killer.



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