I love housing, it elevated my ESO experience to a whole new level.
I see some general tendencies going on since the launch of the update and thinking about how to keep the economy behind the whole housing and furnishing as healthy as possible.

I believe a "furniture deconstruct" feature would help a lot
Just like in other crafting professions: deconstructing would give a fracture of the invested mats back and what's most important, the item would vanish from existence.
Now most markets are filled up with items which needed only in limited numbers in any household but there's still a continuous supply (even from drops) which seriously devaluates them. There's a big gate opened for them to enter the game with limited slots for them but no way out provided (except destroying which I don't consider an economic move )

Just one example: paintings.
They were great novelties in the beginning, now the markets are flooded with them, anyone can grab a whole collection for a tenner but still the supply way outnumbers the demand with the chance of a drop in every chest.

Other items regardless of their rarity gets piled up with literally no way to get back to the whole economy - their cost of making is way higher than their sensible market price.
I see this "dead stock" on the furnishing items market increasing in numbers every day, now they actually look like "spam" I only need to scroll though if I would like to pick the appropriate one I'm looking for.

One can of course collect a whole load of unused but "it was on great price"-kind of furniture pieces but that has a limit too. One way out is buying small houses to store them but that would look like mule characters - again not necessairly an organic solution
ESO+ has double storage I hear which only buys a little more time before the same phenomenon shows up again.

I'm not sure if deconstructing would solve the issue alone but I'd be sad to see ESO furnishing economy getting hard capped from one side in lack of recycle-based drainage and opened up infinitely on the other side which altogether devaluates the whole process and the end product.
I know the whole market has not levelled properly yet so it'll take another few weeks or months so I may be early on ringing the bell

Anyway I'm blown away by housing in ESO, I can't thank ZOS enough for introducing and developing it further!