Putting ASIDE the amount of resources it would take up... The major downside would be it's locked to FC but! Just imagine..

You get instanced FC Wards. The FC purchases an instanced ward from wherever they'd like. So then anyone in the FC can buy a small/medium/large. FC house can also have whatever. So EVERYONE can have a house. And if you NEED more, it will add more (like apartments) but only when everything has been filled.

PROS
Everyone gets a house
People can get multiple spaces
You can buy at your own time
You still have that neighborhood feel with FC mates
No house flippers

CONS
Tied to an FC
Neighbors only FC mates
Pain to access to view from non FC members
A crap ton of resources from SE

So here are a lot of complaints I've seen and solutions:
Just not enough housing via
-People owning more than one- Houseflippers or just in general
  • 1 house per account
    Instanced Housing
    Rent
    Increasing apartment space