There are only large and medium plots left in all of the districts on Faerie. They have already increased the number of wards twice, so they have that ability, so why not increase them again? and I'm not talking just for Faerie, but for all servers. Dynamically increase the number of wards to meet demand. Artificial scarcity may jack up prices and make people feel prestigious that they have the houses, but it's gonna alienate far more people that want to participate in the housing and can't because all of the plots have been taken and no new ones have been added in the last forever.

Or just make the houses individually instanced, since the neighborhoods are often empty anyways. That takes care of many of the server load issues and allows a virtually unlimited creation of housing space.