I know that in ESO even the hardcore raiders have houses. Heck Alcast who is pretty much what Elitist Jerks era Ion was for ESO (and ESO hard content is extremely elitist and extremely hard) and he still has a housing video or two (he even did one on the newest house which is about the size of a small raid). You don't need to add a ton of utility to it for everyone to care; in ESO many players have houses simply so they can practice their rotations in peace (the game completely depends on muscle memory given how twitch gameplay it is) and get some additional storage. That doesn't mean they start becoming asocial and hiding in their house all the time. But perhaps instead of just flying around the city or logging off when you need a bit of downtime you just check your house and see if you can plop Onyxia's framed head over the headboard.
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Lordaeron is huge and it becomes very evident back in vanilla when you do the Barov family title quests (and the Barov's really owned a lot of land!)