Is player instanced housing more of a strain on the server?

[Jojoya]

With instanced housing its more of a strain on the servers for SE. Potentially everyone and their mom can have a house which would have a yard with things and an inventory plus a house with several floors and an inventory.

The only benefit is for people at home with a potato pc who dont want neighbors because it blow up their pc having to load all the items in the ward.

You don't understand how instanced housing works (or even instancing in general) if you believe that.