Wow, can't believe I missed this:
When first installing lxc (version: 0.8.0~rc1-8+deb7u1) ("apt-get install lxc") it will ask you in what directory you want the containers to go.
EDIT #2 END
Apparently if you install "lxc" from source with the command:
make install --localstatedir=/home
it should allow automatic creation of a VE in the /home directory. This will impact all lxc-* tools.
You need to edit "lxc-create" (for me it's in "/usr/bin").
In that file where it defines "localstatedir" and "lxc_path" you need to change that.
Based on what you want, you would need:
I have just figured this out; it creates the container without any errors, but I have not tested it beyond that.
As for the line "LXC_DIRECTORY=" in the config file "/etc/default/lxc", it needs to match the line "lxc_path=" in the file "lxc-create" or it will create a rootfs in two different directories.
So your config file "/etc/default/lxc" would need to read:
and mine reads:
This is of course a workaround, and I do not know the impact this has on other lxc-* tools. They may need to be edited as needed also; perhaps someone else can chime in on how to install lxc with this built into the program.