If you look at the old patch notes you’d see that, back in the days, a class 5 small could cost upwards of 40 millions on legacy servers, and they were for FC-only. (Different pricing were set based on servers, likely based on server economy. Cheapest was 4 millions.)
https://na.finalfantasyxiv.com/lodes...af43f3c43828a/
(It’s long. Try searching for “Plot Pricing” on the page.)
Like Dzian said, the neighborhood system was never intended for the entire server population. It’s intended for a select few; something for active FCs with aim for.
Things have changed since then, but it’s obvious that the design can’t handle the large demand. (And for those thinking it’s not an issue for the Japanese servers, there are threads on the Japanese forum on the lack of housing too. It might not be as severe, but the issue occurs there too.)
Improving the instanced housing (apartments), so that people would be more willing to settle for it, is probably more realistic.
On a side note, I’m surprised by how few people were buying the apartments though. Before my character qualified for housing purchase, I was fully expecting the apartments to be full, based on all the threads on the lack of housing. I was afraid that I wouldn’t be able to buy even an apartment. But as it turned out, the apartments were mostly empty. Only the first 2-3 wards had full/semi-full occupancy in LB. I ended up picking ward based on how easy it was for me to click (I didn’t know they offered shortcut in menu once purchased.)
What’s making the apartments so undesirable as personal housing option? (Beside the lack of yard?)