So, I'm going to point out, there's nothing wrong with just giving people houses in a video game.
OP never said anything about free houses though.
Back to your original post; I think instanced housing should 100% be a thing- personally, I think it should feel like a proper reward & have unlock tiers like beast tribes/ doman enclave/ firmament type deal- a progression based system set on the players donations.
Like you start out with a tiny plot/ island but the more you contribute the more is unlocked- gardening, bigger house, etc.
A little grind wouldn't hurt anyone, I agree- but the neighborhoods are dead. Most apartments are locked or if open, are empty. (atleast on my server) How often do you see wards full of people on a regular basis? Neighborhoods are a waste of resources imo. Everyone has asked for larger item space & more decoration- Many people want instanced housing because alot of folks have felt the frustrations of not being able to get their own house & deal with the limitations of an apartment/ FC room.
SE can implement a system that completely overhauls the current housing system from apartments to s, m, L houses. Put a notice out for everyone & a news letter that people need to pull out their items & can get a refund on their apartments & houses. For players who don't log on in this time, have their items put on the house NPC & held until the player can finally pick their items up.
--Wards & apartments should now be dedicated to instanced housing- A player can have an FC plot dedicated to the amount of FC members they have- like a guild hall (Similar to Guild Wars system, idk if you're familiar but it was a large world surrounded & modeled after different themes like ancient jungle ruins, a desert/ oasis, a european style castle, a temple dedicated to the god of Death, etc)
I've played many games that had various types of housing, for me the reward is the decorating & making something awesome each time.
TL; DR there is no reason obtaining a house should be a struggle at any point in a video game. A regular joe should be able to get the plot they want, a little grind doesn't hurt. I'm sure somehow, small indie company SE will manage. Hrothgar ears be damned.



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