They don't need to overhaul the entire system, but they could add an alternate housing option instead of the Residential Areas (which imo should have been left strictly for FCs).

That's what we all thought personal housing was going to be, but then it wasn't.

Personal Airship? Rent-a-house in Ishgard? They have options going forward, I'd hope they consider other forms of housing to alleviate stress of the current system.