Whatever your team comes up with by 4.2, Square, it needs to be a hell of a lot more than just "We added three more wards everywhere" again. I honestly don't know any option besides getting your hardware in order enough to dynamically generate wards. Even LotRO managed this a decade ago.
But an auction method will be even worse than the log-in rush and screw people who aren't billionaires. A lottery method is just as terrible RNG only saving the "couldn't log in" problem. Instancing *everything* ruins the fun of meeting your neighbors and being out in the world. Expandable apartments doesn't allow people to have the fun of decorating the outside of their house or yard. It's completely unfair that Square refuses to properly invest in this game when it's one of their biggest cash cows.
Figure out dynamic wards, and do it soon. People aren't going to keep putting up with this every time new housing comes out.