I'm not sure how it is for the smaller houses or medium houses, but the item limit for large homes is 200 pieces. I was wondering, and hoping, there were plans to increase the item capacity for homes. In the large houses we have a lot of room, but not really enough item capacity to fully furnish each room the way we would like to. At least, that is my opinion on it. Decorating the house is really fun and it's become a really fun hobby for me to do in the game so I'm sincerely hoping there will be a way to increase the item capacity.