Quote Originally Posted by Daeriion_Aeradiir View Post
I can only make assumptions as only the devs know how the instancing works, but assuming their server hardware is limited when it comes to total instances they can allocate, I can assume the choice of 'neighborhoods' was made to keep the total housing instances on each server down to 36 instances (12 wards * 3 housing areas) vs 2160 instances.
Sounds plausible - until you realize that the interior of the houses has to be allocated as an instance either way, so you're not saving those 2124 instances, you only have 36 more. Moreover, every FC house can have up to 512 more instances inside it - Private chambers. If the amount of instances was an issue, people using that potential would be a veritable nightmare for them.

If they had wanted to save instances, they'd have had to design the exterior of the house to fit with the interior, so that both are in the same instance. Easy to do when one house is one instance, a lot less so when 30 houses make one instance (Subdivisions are a new Instance IIRC).