Quote Originally Posted by CookieMonsta View Post
This can kill the server if the appropriate scalability wasn't built in from the ground up.

Each ward is adding an unknown burden on the server which has to be accounted for. Only SE knows what this is but I suspect there is some issue with ancient/poor code that is preventing infinitely scalable wards.
If that is the case then adding instanced housing with infinitely scalable number of houses is very likely to run into exactly the same issues - and would thus not be a workable solution.

The proper solution would be to fix whatever problems prevent adding lots more wards, and then add more wards.