I think it is for people who want to keep placing a houses next to idocs.
For an account that just places a temperary house today then tommorow then the next day.
I think it just beats the 7 day wait - but i have not tryed it.
Yes, for example if you placed a house the day before at an IDOC, you can go outside your house and say "I wish to resize my house". It will drop that house and then you can go to the next IDOC on your list and place next to it so you can easily drop looted/heavy items there and quickly go back for more. Realistically you should only be allowed to place a house where your original one was but you are not limited to where you place and it avoids the 7 day house placement timer. If you don't do that, you would have to wait 7 days to place again.