Sorry DeadBob. I disagree. Housing has it pros and cons but in the end its game content and new updates which improves a game chance's to retain players.
Let me use UO as an example since the OP brought up a UO housing style system.
If players are looking for a UO housing system then they may as well stay with UO. The UO housing system retains accounts not players. Meaning a single player can have 2, 4 10, 50 accounts and have houses on each account on one shard or spread out on several shards. Look at the aspect of activity. The same player can let an X amount of accounts go inactive for 90 days while retaining that land spot and house. So the most desirable land spots are rarely retaken by current active players or give a new player a chance to acquire that spot. So is the player just holding houses spots for monetary gain while not being an active player in the community. What good does housing do then if a game has less active players but tons of owned and unused housing that looks like a ghost town in most places?
Active players is your community. People that log on and
play the game at least 3 times a week is part of that games active community. Players who just log on to renew their accounts to hold their houses and spots and not be back in 90 days is not truly part of the active community. So a new player or a current active player notices their are less and less people on. They may change their game time to try to find other players. That doesn't work and they can't really hunt with other players, the player either decide to play solo type templates or just find another game.
When a MMO is in the making, developers cant just assume that gamers/players are a type of game and focus on a singular aspect of that type of gamer. We all have different play-styles. Where some players like PvE only others PvP only and players who enjoy both. If devs only focus on one aspect of a game and not all of a vast variety of types of game play the game isn't going to make it very long. They have to create a game with all types of play-styles and again content is key.
In the end, housing is just a perk. I'd rather see a healthy, vibrant game with a healthy population that is playing and raoming the lands. I like playing with others. I like to see the game. I enjoy the "LFG" to go hunts or guildmates wanting to defend the lands. I live in a house in real life. Why should my character, that is all about seeking adventure, saving the girl, saving the villages, defending the lands I am roaming be cooped in a house in a game. I am already doing that when I am home.

. I seek fun and adventure in a game
The Elder Scrolls Online has great potential just the game content itself. I am not against housing in the game, but if they would implement a housing system in the game's future, I would hope they would have strict regulations, where housing can not be just owned and forgotten. Make the player to keep activity like paying rent to retain the house.