Low caps are a deal breaker. Housing is no fun if you can't do much with it.

It doesnt matter how much we complain about it, they wont fix it. Look how long it took them to do something as simple as allow you to arrange your characters on the character screen. People have been asking for a year or two at least. It takes them half a day or more just to fix there terrible coding job on the login server.

To make significant changes to housing would take them decades at their current pace.

The main problem with housing is that it's designed more like a money milking machine than as a real interesting and engaging feature.
Each and every time a new DLC comes out or a new housing feature is released, you can be sure it's monetized to hell and back, and that the actual design decisions are heavily influenced by the marketing and monetization departments - cue furnishing recipe farming nightmares and scarcity of style mats for crafting.
If the trial and dungeon diehards were treated like this, with artificially low droprates and scarcity to incentivize purchases of perfect gear from the Crown Store, or arena weapons in the right traits from the store, there would be no end to the crapstorm we would see on the forums, but since it's "only" housing, and "only" cosmetics, it's perfectly fine to extort the interested players for obscene amounts of real life money for a damn chair to sit in or a house decorated to their liking.
It should be FUN to collect recipes, to craft your own furniture, and to decorate houses. But currently, you have to choose between a farm and grind that will take up more time than several full time jobs - or paying an obscene large amount of real life money to obtain a few pots and chairs.

Secondly, houses have no function. There's nothing to do there. Apart from the combat dummies which are of little interest to most people in the housing community, there's nothing to do in a house. Sure, it looks pretty and you can show them to your friends and buddies, but after that it's just an empty shell sitting there looking all dead and lifeless. Then you've paid hundred of dollars for basically an empty husk. This also makes it easy for me to pass on more houses, I already have several large and small homes, I seldom use them at all now that they have been decorated, apart from showing them off to a friend from time to time. So I have little to no interest in buying more houses, especially not from the Crown Store, since these will be of little to no use to me either, and especially because it won't even be fun decorating them, with the monetization schemes that I mentioned above.
Another dampener to my enthusiasm is the item cap, and the other artificial caps that ZOS put in place, such as cap on pets/mounts and visitors. Not only are my houses mostly lifeless and empty once they have been decorated, I also often can't even decorate them to my satisfaction, since the item cap of large houses is laughably small. There are so many constrictions on housing and decoration that it usually ends up in a headache more than a fun pastime.

So it all boils down to three major issues that will certainly make me reconsider several times before buying housing stuff from the Crown store again:

• Aggressive monetization of everything housing related, increasingly difficult to obtain recipes and style mats
• No actual use or benefits of housing. Once decorated, a house ceases to have any purpose
• Way too many constrictions and limitations to your creativity, such as the extremely low item slot cap