A Better Way for Houses Up For Grabs

[ItMe]

- If the amount of wards is made high enough, everyone will move to medium or large houses, resulting in ghost wards with a lot of empty small plots

Maybe to some extent, but people won't just gravitate to the larger option. Each size is good for it's own thing.
You can't make a cozy cottage out of a large and not everyone wants to make a mansion.