It's an interesting example because I think it proves the opposite point. There are places, large dense cities, where most people live in tiny apartments, and if you're having a dinner party it's not going to be inside a house.
It's perfectly reasonable and understandable to say you're hosting the party even if you don't own the physical location (see also: weddings)
the complaint is the communication, not the literal words. because the title conflicts with itself, it causes confusion.
for example, saying, "come join us. I'm hosting a dinner party. It's at this restaurant," would be similar.
It's perfectly reasonable and understandable to say you're hosting the party even if you don't own the physical location (see also: weddings)