I kinda agree with this.
Just like old school mmos that had housing since 1999 like ultima online, tibia, everquest.
Just have finished buildings in the places you talked about. Have an “auction house” where you bid on the said house and if you win it you own it.
Then you can decorare it however you want.
Then you pay a monthly rent which is a good gold sink. (if you cannot pay rent then you loose the house).
Yes everyone wont be able to have a house. But atleast you wont have an instanced house or a neighbourhood and they can always add houses with new citys/content.