I don't get how he's out of touching. He can't add more housing space without probably re doing the entire infrastructure which would probably mean bring the game down for an extended period of time. So he's mentioning an alternative, apartments, honestly why is housing so important? This isn't Aion, BDO, nor Archeage where housing is actually needed or provides something useful, it's just all glamour. Is it because it's limited or what?

The restrictions with glamouring is in 99% of mmos out today, the ones gone, and the ones to come. Devs just aren't going to budge on that for whatever reason. Yoshi is out of touch when it comes to a lot of stuff but an optional glamour house and actual glamour aren't any of the reasons.