This is generally my take on it, too. Have a neighborhood/area/part of town, vs. street layout.
Re: why you may need more than one room: everybody assumes that if you're in your home with someone on +where, you're fucking. It doesn't matter if you're fucking, it doesn't matter if you're picking navel lint and chatting OOC about your favorite TV shows, people are going to assume this. If you're just in 'Jane's House', people are going to assume this more than if, say, you're in 'Jane's House - Ritual Library', when 'Jane's House - Bedroom' is something that would arguably exist.
This doesn't mean -- barring communal residence or business -- you probably shouldn't make a one room permanent build for the property and then temproom up your kitchen/bedroom/kinky sex lair/whatever else, but that's one reason I understand too well as a reason to want more than one room.
(tl;dr: assholes assume shit and act like assholes on account of that assumption, that isn't fun, this hobby would be vastly improved by a lesser quantity of assholes and assumptions)