It appears there are O(n log n) algorithms though, I just didnt come across them at the time :)
EDIT: Or maybe not! I dont have time to dig into this, but it may not be accurate enough
Im not sure that would work for my use case though, since you can see inside the buildings in my game (and there's see thru windows!). A bunch of high density buildings will be drawing tens of thousands of sprites within the camera's field of view.
For anyone who's interested, here's the scope of the problem:
Isometric projection is simulating a 3D world by layering 2D sprites in a specific order. Notably, units/vehicles in the game have smooth (floating point) movement, so they can be e.g. partially occluded by a wall or another object. My game also has pixel thin walls that can be placed on any edge of a tile.
So imagine sorting a vehicle sprite behind two wall sprites (the vehicle sprites are twice as wide) as it's moving across them. All you have are rectangles to work with. Now add in a stationary plant in front the wall, and a person walking in front of the plant, the two walls, and the vehicle.
e.g. There will be a time when the front the vehicle (the bottom of the rectangle sprite) is lower (i.e. closer to the camera) than a wall sprite, but the vehicle would still be occluded by the wall.
[1] https://mazebert.com/forum/news/isometric-depth-sorting--id7...