I always thought a heavily sharded area of SW or Org would make sense for housing. Offer ~10 exteriors and when you buy one you choose an exterior. The art asset in world with that exterior has an instance portal for you now. The rest are just existing closed off buildings. Intermingle it with various vendors and shops for a city feel.
This way you still get a residential district vibe.
You can still see plenty of other players coming and going because of sharding, but not everyone is visiting the same home.
I’d personally turn mounts off on the street so you see people running to and from and they spend just a little more time here. It also cuts down on visual clutter.
Give us an in game reason to visit our home and allow us to invite 1-x many other players into our personal residence.
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As for why, it’s nice to pursue something chill that isn’t character power but do it in a platform that our friends are playing and we’re familiar with.
I love wow, I love m+, I’m loving remix, I enjoyed plunderstorm, I like raiding, I tolerate pvp. You know what? I also love Pokémon and animal crossing. Sometimes it’s nice to go do something else, but I can zone out of my pug group and go tend my small house garden somewhere to kill a few minutes.