This isn't THE solution but I think one of many solutions for fixing things where they stand right now, with keeping neighborhood interactions and whatnot intact.

I think they should add a "SLUMS" district (for lack of a better word, uhh... the "housing district") that goes with every ward (a sub-sub ward) where houses aren't all nicely placed like they are now, but instead all placed in rows side by side with still some gardening etc available, but it's a lot more "cramped". I mean a LOT more space efficient, a LOT so they can fit like 100-150 in a zone. SERIOUSLY SIDE by SIDE.

This would mean not so much extra server load for dedicated housing areas while still creating the neighborhood areas that people that don't want instanced housing would be able to enjoy, while being able to house SEVERAL TIMES MORE residents and FCs.

SPACE EFFICIENCY.

...(continued)