Housing while not a dead end for a new group, it is a plus if all others have a house.
If this group does get a NPC who are interested, they can always rent a house. It may not be a big house but something with letters of the owner allows it and be a central meeting point for the members.
The first house as a local that we rented, we stuffed guys in because everyone wanted to live there and the second was the old PKA house which was rented after they built a new house that they owned. Our third house is one that we purchased which has been torn down and a new house built.
It will take a lot of hard work on the part of the members and if they are serious, it can come true!
Good luck!
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