So the change in housing that I mentioned here
link is not getting reverted?
I noticed that it got removed from the roadmap.
We decided to keep it as-is.
Note that the "decrepit hovel" diary entry can be resolved currently by purchasing enough premium interior decoration from the real estate office.
The "have to watch every penny" diary entry however can be resolved only by raising standard of living higher than brand reputation. The "upper limit" for standard of living is set based on the district, so to reach A+ you need to live in Taurus or Necropolis, and to reach S+ you need to live in Necropolis or White Town, and to reach S++ you need to live in White Town.
The Doylist rationale is that living in multiple districts creates a more interesting gameplay experience, as there are some (subtle) pros and cons to each besides direct costs. Living in more expensive districts also serves as a money sink which motivates trying different gameplay strategies. There are few compelling reasons to move out of a cheap district to an expensive one, currently. A negative diary entry that you can only resolve by moving up in the world makes it slightly more likely that players will eventually move.
The Watsonian rationale is that your character does not have has access to the most spacious estates in the cheaper districts, and there are limits to how much you can improve your standard of living in a cheap apartment. You're renting apartments in the cheaper districts that are clearly budget quality, going by the descriptions when you rent them as well as the constrained home storage limits.
Even as a patrician, you don't have access to anything better in the cheap districts, because the best places have already been taken.