Folks are getting too caught up in arguing over this. Instead of arguing, we should all be united in demanding instanced housing so that every individual and free company can have one.
I've said it so many times and I'll reiterate it again here:
If you have the gil, you and/or your FC should be able to get a house of whatever size you can afford.
Anything less than that is, and will ALWAYS be, unacceptable.