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(I actually do recommend levelling up alt homesteads to deal with space issues - it also really helps when working with decorations that clash because you could just have a different themed homestead on each character.)
I only have alt characters for extra bank gold space, and I wish I didn't even need to make them for that. I absolutely hate the idea of playing an mmorpg and having a bunch of mediocre characters when I could just have one really powerful character that has everything.
Somewhere down the line it'd be pretty neat if we got a chance to expand our homesteads some more.
I understand it's not really on the list of priorities right now, but sometime in the future maybe...
With the amount of homestead items that are getting added to the game routinely now via updates/gacha, I am seriously running out of space with the measly 3 expansions that are currently available. I barely managed to fit the hot spring in my homestead and now I have to try and make room for a tennis court.
It's getting to the point where even at max HS size it's getting mildly difficult to move around freely and get to everything. Not really a huge deal, but it would be a nice quality of life kinda thing.