DRS fully automated? If not, got recommendations to apply? What are the relative compute resource loads of the 2 hosts?
At first look, it seems odd that DRS hasn't suggested some of the VMs migrate to "host 2".
Have a look at this article: Load Balancing vSphere Clusters with DRS - VMware vSphere Blog
What do these metrics look like on your cluster?
Do you get any vMotion issues if you manually try and migrate any of the VMs from "host 1" to "host 2"?
Yes, We had Vmotion issues. We fixed it and it had positive progress from then on.