If you want a good housing system, it has to be safe and you cannot let the players place their houses where they want because otherwise it will be chaos when there are many people, and surely the best thing would be to instantiate it so that no one is left without a home.
Is a translation of google traductor, ill hope it can be understood XDD
It's translated good, don't worry.
And yes that is the best approach to housing, with some improvements of course :)