Maybe we should be asking for Square to give some incentive to players to relinquish houses they are not using, first.
A lot of people buy houses and lose interest in them over time or they might have other more personal reasons for wanting to let a house go. If they own a medium or a large house, relinquishing means losing a big chunk of gil. I see a lot of houses on my server that don't seem to be used, maybe people are simply taking a break while auto-demolition is suspended, but if some of those houses could be released onto the market, it might help ease the present situation a little.

There are so many things happening in the world right now that starting auto-demoliton seems wrong to me. I'm sure most people who cannot play probably do have more important things to worry about, but I don't think that justifies taking things away from them in-game and making a bad situation even worse.