I agree that would work but i dont have any small houses. Most houses i have are the big ones and the skylanders houses and halls. got all the skylanders except this months alter ego and the Admiral Thumpback. So yes i really dont have room. Need to add more islands.
i think this needs to be made a priority. you keep adding more and more stuff and there is nowhere to put anything anymore without destroying some buildings. you have three games (plus) worth of content on the same amount of real estate that lost islands began with.
or perhaps create "mabu appartments" a building on a 3x3 grid where you can put about 10 house inside ( so you still have all your mabu citizens and mabu workers but also have more space on your existing islands )