I think the viability of this way of life will depend on what is considered a repair worthy damage and what is an 'end of life' damage.
When things are made to last you will never get the 'throw away' environment we have now, as all items are made to be used a long time. By having 'rules' against repairing what is really broken, people are urged to repair before it is really damaged.
These days (21st century) we almost never repair things, even socks with holes and shirts with a rip are mostly just disposed off. If we go back less than a century, to the mid 20th century, many things would get repaired and be seen as 'as good as new' with a small patch or other mend.
One of the answers describes a house with a broken window as 'no longer fit for purpose' and I do disagree, windows are minor repairs. Even rotted window frames that need repairing are minor repairs based on the value of the house and the quality of life in such a house before and after the repair.
Your proposed 'way of life' makes that people do keep their house in good repair, as when you let your house become 'beyond repair' it loses all value. It may even get to the point where neighbours step in when they see one of the houses going poor, but still within the rules to be repairable, to avoid having to build a new house for the people who are clearly struggling to keep it going.
Knives will be sharpened often, so not to become completely dull, but even a dull knife has its uses. When a knife is sharpened so often it becomes too thin it becomes flexible in ways that allows it to be used for other work. Your 'way of life' make people realize that they need to retire that knife from its former use and now reserve it to a use that gives less risk of breaking it.
In our world's 18th, 19th and early 20th centuries very few things where left to get damaged beyond repair, only items that got worn to beyond use in normal use would be retired in the end. And even then they would often be stored in case parts could be used again.
I imagine that in the way of life you intent, repairs to common life items will be allowed but when items get to the end of being repairable, instead of being stored in the attic, they are taken to the 'temple' (or whatever you want to call it) to be said goodbye to forever. And that will be a mayor religious event, so saved for items of value that have had a long and useful life.
Likely the people in that world will not own spoons made for $/€ 1 per five, each of their spoons will have been hand made, out of good materials, whether silver, horn, wood or something else again, and by the time they are beyond use will have had many years of good service and may have been in the life of the owner for the whole of the life of that owner. And as one of a few spoons in their life, like one for each person and maybe one extra for the kitchen.
In that kind of world, people make blankets out of patchwork of the old clothes of the family, each patch can be named to the piece of clothing it came from, who wore it in the end of its life and possibly each of the owners before that. When such a blanket gets to the end of its use, people will have forgotten, as one or two more generations will have passed, or many more, and then in our world it is now chucked into the waste. In your proposed way of life, the item is allowed to be mourned and said goodbye to. (That is, if your rules allow blankets made out of scraps of used clothing.)
Taking down buildings beyond use makes for a safe environment. Buildings beyond use get dangerous with parts falling down. In the Netherlands, where I live, you do not find many buildings standing beyond the end of use, only buildings with a listing to preserve the building are not allowed to be torn down and the space they used to build something new. No ghost towns here. Nor in your proposed world.
Use a house as long as there is life in it, and to make sure you can, you build it meant to last and repair it as soon as needed to make it last.
In countries like England and France it is not uncommon to find houses which are 500 years old, and with normal care they can be used for an other 500 years. It is houses build in the last century that are often deemed 'too old to repair' as they were build of poor materials and in ways that were not proven and turned out to be less than good for the condition of the materials.
Over the centuries many houses will have been build that were not to last, and they did not last, but a well build house can last for a long time. Keep it repaired and it lasts forever. And that goes for almost everything people used to make or build.