If apartments had functional equivalence to housing, people would be more interested in them. If SE offered me a three room condo with a big balcony that can do gardening and place outdoor furnishings, I'd take that and effectively be out of the housing market. That wouldn't cover all the demand, but it would give functional gameplay feature equivalence (as it could do everything a house can do), which would help a lot. Right now, apartments simply can't do all the things even a small house can.
Change that, and you'll at least be giving people a reasonable alternative even if you can't give everyone a plot.



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