How to fix housing in 2 steps

[Sairys]

I didn't. I said Ishgard has apartments, which is an option one has in lieu of NOT having any housing. It's not Square's fault if you willfully choose homelessness.

Apartments aren't housing, they're just an FC room you can't lose. (I wouldn't be surprised if that's part of the reason they can't be upgraded.)

There's a whole category of housing furniture that's not available as they don't have an outside section, so they don't give full access to the housing system.