You are only looking at personal housing, FC housing exists as well, and there are a lot of plots available.If there was an infinite supply of houses and people could bid on their favourite plot, it would make sense. However it is not the case and there are not enough houses to meet demand and the lottery becomes quickly irrelevant. I think that the idea was to give a reasonable chance to enter the system to the greater number of active players. People work, they can be on a business or leisure trip, have family emergencies, etc.
Anyway, unless SE fixes their flawed system, it is a moot issue on most servers. There are three houses on my server up for grabs this week. There will be none left after this cycle unless the owner of a house gets permanently banned from the game or cancels his account.
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