Personally I like the idea of player housing. Now I am of course new here to CotH, but I came from several other servers where player housing has been done seamlessly. There is of course a process that goes into it and would have to be followed by every player.
1. You would need to create an Application for the house you are wanting to have built.
2. Your character would need to have the IC means of affording the house requested. If you have 1g in the bank there is no way you could afford to buy a house let alone one that is multi level. The size of the house built would need to directly correlate to amount of IC funds available for purchase.
3. The location of the house would need to be in territory that is not occupied by anyone or any factions. Adding something to a major city can be done but requires that whatever space it is being added to is free of major Lore NPCs or away from an area that would interfere with the local government.
4. Players who do not own that home or did not have it built would have to use common sense when approaching it. You can't just claim a house, you have to purchase it or have it given to you. If you stumble upon a house and decide to "take a look" inside, don't be surprised when the owner jumps out with a loaded shotgun.
Here is a copy of the application used of the "Millennium WoW" server.
* Rank: See the Sticky Topic.
* Base Location: i.e Dragonblight, Wintergarde Keep - PLEASE PROVIDE SCREENSHOTS;
* Custom or Pre-Made: Does the house or base already exist?
* (Custom) Building Models: i.e Horde, Alliance, Tents PLEASE PROVIDE SCREENSHOTS;
* Number of Buildings: Max ten
* Property Of: i.e Millennium WoW Staff
* How Frequent Use: How much would you use the base
* Sacrificing: Would you allow your place to be taken over by enemies?
* Additional Info: I.e, want it by Tuesday, please have me around when making
* Budget: How much money do you have at the time of this post? / How did you get the money to have this built/to purchase it?
* Reason: Why does your character/your guild need this place?
* Member List: The list with the members of your guild.
* Guild Synopsis: Brief explanation on what the guild does
The application process for housing was one of the things that this server did well. I of course found many other things that I didn't like and that's why I have come to the super-fantastic-awesome place

But all in all player housing would be a great addition to this server and I'm sure many people would be very happy. Keep in mind that it is also best to have the GMs approve a select group of additional "Builders" that could handle these applications and build these while they are away or if they have other issues to tend to.
I hope that this information has been helpful in this query.