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So it appears that the difference is only aesthetic, in which case it was the first and last tier 3 house I have built.
Why would we waste materials and building space if there's no return on investment?
I think they're talking about repairing damage. But that is only affected by building materials, not by tier, as far as I know.
It doesn't require less wood to heat it. It requires fewer repairs because better materials last longer. That said, the top tier house is more of a status symbol then something you need. As you noted, they cost more and take up more space but don't really give you much that the standard stone house doesn't have.