[Trexmaster]

What problem are we preventing with barring private housing at this point?

Everyone is already secluded to their own corners as is, with a select few areas being designated public RP spots. All that has changed is, as the OP stated, a select few get access to these ordained private areas.

As Sawrock stated, shared locations for housing would be very awkward. Rooms, such as those typically found in inns or barracks, don't have this issue due to their general abundance, as it is rare you'd find every single room in the area in use at one time. Consistency is more important for the sake of immersion when it comes to houses, as it takes one out of the scene having to explain why the house they're now using is somewhere else and looks much different.

I honestly think we might as well reintroduce housing districts to an extent and allow them to be governed by their respective nations. One of the issues G6 had is that player homes were not inherently attached to where they physically were. A G6 house could be anywhere in the universe. Or even outside the universe. Player homes were not strictly IC. Some were just event spaces. Some were entirely new locales outside the playable area.

For Korvara, player houses would actually be where they are, allowing them to create a sense of community in physically living near other characters. Player governments would have (more of) something to manage. Taxes could be paid on them. Money would see purpose. This of course could all be fluff but the point is it'd provide a lot to the life of the world. Then if you want to RP with those using their houses? You know where they are and can ask, as opposed to them being forced off client.

As far as I'm concerned the primary issue with player housing before was how detached they were from everything else at times. I believe better integrating them into the overall roleplay environment would alleviate the major concerns. Since you cannot tell me that the absence of player housing has curtailed anyone's desire for private roleplay at this stage of Korvara's lifespan. 

Everyone should have the opportunity to have a space they can truly call their own, not just a handful of people. If people want to socialize, they will socialize, and seek out interaction. If people do not want to socialize publicly, taking away the space they'd be in otherwise simply means they will not be on the client.