It would definitely make it more exciting to move into a house if you had to work hard for it.
And while we’re at it, it would also be great if you had to build up and buy/craft everything inside it. Like - if there was a public alchemy station somewhere, but if you wanted your own private space to work, you had the incentive to get a house and craft your own alchemy set to place inside. Then if you wanted to age your potions, you had to build up and craft the rack for them as well. Etc.
I think that’d add more dimensions and motivation for progress, which is vital in an MMORPG. It’s not always obvious what the point of advancement is in an MMO, but that would be another avenue to motivate the sorts of people that would be into it.
More customization in general would be great too - especially if you could hang up trophies from kills (maybe earning them after you kill 100 or so, for example). Then you could have your own space to invite people into. I’m taking a lot of inspiration from Runescape, which had its own Construction skill, and made for perhaps the most engaging player housing system I’ve experienced so far.
Finally, it’d be nice to have activities to do with people in one’s home. Since we’ve already got dragon racing, throw the possibility of building a course inside the house. If other simple tavern-esque minigames are added, even better. Then you can build some inside your house, and invite people over for game night, in an emergent bit of fun.