Personally, I thought the auto-demolition timer would be a huge help. That it would be a semi-decent sized group of houses available that first 45 days, then after that a slow trickle to help ease the market.
Reclaiming houses from everyone that has multiple houses might give a one time boost of about 100-200 houses on the market per server. It would make a "huge difference" one time, but it will also piss off many people, and create many headaches for SE including wasting time and resources on a one time event to make it happen.
There is also no guarantee that the number of people who are happy would outweigh the number of people upset, especially since many people have expressed concerns about taking homes from active players as a slippery slope. It would invite other in game items/ purchases to be taken away from players in the future. People who own multiple houses won't be able to buy any more, so that will help keep future ward expansions for homeless people (with people who already own a home being able to relocate to "dream plots"). Either with the addition of more wards, reclamation, or more likely a combination of both, housing will sort itself out as long as SE keeps taking the issue seriously and works at it (though instanced housing really would be the best option).



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