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Housing in UO was the best, but land shortage was always a problem (yet what added to the value to everything).
But in reality, there is only one of three likely methods we could see.
1) Instanced housing FFXI style. No spacing issues, everyone has one, nothing special about it.
2) Premade housing available for rent, such as L2. There is a pre-specified amount of vacancy going to either the highest bidder or through competition in some form. Would be pretty easy to do, but unlikely to be available for individuals.
3) Dedicated housing area. Pretty much a UO system of placing a house of your own on physical property, except in a dedicated area seperate from most of the game (IE no housing in the middle of spawn grounds).
Now, without a doubt, choice 3 is very unlikely. Players walking around in such an area will experience some impressive memory requirements, since the housing and items arent hardcoded into the map. 1 or 2 is the most likely to happen, we've seen 2 in L2 already, but if they want inviduals to have housing we're more likely to see 1. The combination of the two is very possible, I believe EQ2 did exactly that where you paid rent for places in town, but those places took you into an instance.
But knowing that there is siege level territory to be owned, whatever housing situations they make up will likely be pointless beyond having a room to decorate... big whoop :P
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