Prices were astronomical relative to the economy at that point in time. And at that point in time, gil was very limited. The main source of gil was quest rewards during leveling. Other than that, gil generally came from either crafting (i.e. transfer of wealth from player to player), or running FATEs repeatedly, or leve quests. And it was at a time when dungeons gave gil through coin drops in chests which had to be divided between the party members---only to get nerfed because bots were farming those chests.
Not to mention Yoshi-P said that housing would be afforadable but released it priced for only the richest hierarchy (which at that time meant the crafters who caught the initial relic market selling pre-relic weapons at 400k a pop at the peak on a non-legacy server, practically a non-crafting player's full fortune as a fresh 50).
Only then came the housing price adjustments, more gil income sources, and so the housing rush that you talked about. FFXIV economy wasn't always what it is today.
Back to the topic, I used to want a house of my own, but now I just want one of those apartment rooms I heard that they're considering.



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