This is a hard problem. Let me give you some hints.
First, you either have to assume that all the houses are different sizes, or that "bigger and bigger" means "not smaller," and "smaller and smaller" means "not bigger."
1. Label each house with an ordered pair $(i,d)$ where $i$ is the length of the longest increasing subsequence that starts at that house, and $d$ is the length of the longest decreasing subsequence that starts at that house.
2. Prove that no two houses have the same label.
3. Apply the pigeonhole principle.