To be fair, I don't really build Neighborhood, except if I plan to get the Inspirations or the Biosphère. There are not bad (well kind of...), but I just don't want more Housing.
Even excluding the downside, Housing is not often a problem:
- Fresh water city starts with 5 Housing.
- Granary gives 2 Housing. I could go Sewers as well if needed.
- I tend to have the Classical Republic legacy (mostly for the Amenity) which also give 1 Housing
- I tend to have the Monarchy legacy (most for the Diplomatic Favor) which also give, up to 3 Housing for my oldest cities.
- There is a huge 4 Housing boost with Democracy, as New Deal give it for free on top of the 2 Amenities.
- It is rare that a city doesn't enjoy +2 Housing from tile improvement such as Farms, Pastures, Camps, or Plantations. If I chopped more often, I probably face more Housing problem.
- Some buildings, like University, grants Housing. Coastal cities enjoys additional Housing with the Lighthouse.
- If a river has Floodplain, I will build the Dam which give 1 Amenity, 2 Production to neighboring Industrial Zone, a source of green Power (and 3 Housing) on top of the flood immunity. Therefore, I am not far from doing an Industrial Hub with Aqueducts as well, for 2 additional Housing.
In total, my cities has easy access to 13-16 Housing / Population, which is enough for 5 or 6 specialty districts. I do not often want much more Population, as the cities, except the coastal one, are going to work Specialists slots due to lack of tiles to work.
Different ways of playing may induce different use of the Neighborhood. So I can only talk about myself.
At least for my playstyle, the game gave me a lot of way to circumvent the Housing limit. Sure, theoretically, a good Neighborhood beat any Aqueduct Housing-wise, but do people really wants Housing (except no fresh water settling), or are building the Aqueduct mainly for the Housing (except no fresh water)?