If your FC can't afford to buy a house...

[Lafiele]

Guess what stuff no one is going to be buying because most of the population is not going to be spending a dime on anything due to the housing costs being so high.

People still need to do day to day things and not everyone is farming for FC housing which may be surprising to you....

most gil making methods aren't putting more gil in the economy. Most of them are taking the gil already in the enconomy from another player rather than intorducing more gil into the economy.

This is an extremely common misconception. The current ways to generate gil in the economy is overly sufficient. If you have too many new ways to generate new gil and insufficient gil sinks then you're going to have inflation. Thus, that's why legacy servers have such high housing cost, it's because so many people are holding onto gil and have so much gil in circulation that it's super expensive there. This is also what happens if your country prints money like crazy. Your $$ in bank becomes worthless.

Everything has been designed to be in the perfect proportion, people just don't realise it because all they see are big numbers.