Great game is so many ways. I would like to see it better. Dynamic or living towns would be awesome.
Say a town has a strong Lord. That town would attract settlers more than a town without a strong lord. A town with a strong lord would grow while a weaker more lawless town would not. So, new houses would show up with farmers and such. Of course, the lord would send the player out on missions to protect his town from the vagabonds. Naturally, one of the vagabonds is the player himself. So, the lord would be sending us to find ourselves. We would need to hide our tracks and lie to the lord to keep him off our tract. Now, the lord could send other NPCs out to find out who keeps robbing his town. How well we cover our tracks would determine how easy it is to find us. If found, we would have to choose how to handle that situation. Normal stuff, pay them off, kill them and hide the bodies, and so on.
Lords from other towns could send us on missions to protect their towns as well. Also, millers would be sending us out to steal stuff so how much of which type of mission, Lord or miller, will determine how rich and populated a town is. In fact, if a lord of one town does not like one from another we could go on missions to hurt the other town.
This is nothing new, Fallout 4 runs something like this as an example.
The Game Takes place throughout only a few months. There wouldnt ne that much Change in Population, wealth and so on in a medieval town - especially the farmers have no Time to move around in the Summer while they have to Work their fields.
Also they wouldnt be allowed to Just Go there ans Build a new Farm.