There's been a lot of talk about instanced housing. Unfortunately I don't see them scrapping this system they got. So I'd shoot for actually fixing it. Create new special wards and remake existing wards so only FC's can have houses in them, new wards for personal houses. And any current personal house, gets moved to the personal house wards. Then, just do what lotro once did. Set the housing server to see how much land remains, and make it auto-generate a new ward/subward or two and keep doing it till the housing market settles down.

I'd also restrict housing to 1 personal house per account. That would put a stop to the rich folk who use multiple characters to buy up houses, and resell them on the black market. Also strive to get more aggressive on the housing black market. Even though that is a symptom of the problem, it is also a major contributer.