They tried that when Ion wanted to cater to the sweatlords. Oh wow, what a surprise, most of their population aren't sweatlords and they bled a fuckton of players because the non-sweatlords had nothing to do. People also got sick of "borrowed power". When a game is that old, there is only so much you can do carrot wise to keep the playerbase engaged beyond the abused spouses who will keep playing the game no matter how dogshit it becomes.
If you don't want a house, don't get a house. It's not like they're deleting a raid because of housing. Plus if you loot a housing item, you can sell it and make easy gold for something that is functionally worthless to you but has value to others, which you can use to buy raid shit.