You're exaggerating the situation. No one is locked out of housing right now, not even on Balmung (at least for the time being, I'm sure that will change in a couple of months). Apartments are housing.

There are players unable to get a house but from seeing the entry numbers that have been floating around in the forums since the lottery started, the percentage of players who want a house but are unable to seems to be closer to 25-30% (still bad) and not 90%. Players always forgot to include players who already have a house and ignore that some of those entry counts include players attempting to relocate.

It's rather ridiculous to ask for a housing free mode when you could get an apartment and store the majority of the housing items you get as quest rewards and loot drops there. It's only a handful of outdoor furnishings received as such rewards that you are not able to use.