Demolition doesn't release nearly as many houses per server as you're assuming.

Think about the math. For several thousand (let's say 3,000 to make it a conservative "several") to open up each year, you'd have to see about 60 plots a week become available (8-9 a day). If that many were available, it would be rare to not see a house available when you checked the ward lists thanks to the purchase timer preventing the house from being sold immediately.

When demolition is active, players start paying attention to their subscriptions so they don't lose their house.

Don't forget a lot of the houses that become available each year have nothing to do with demolition. They're voluntarily relinquished by their previous owners, usually as they prepare to transfer to another world. Even with demolition active, there are still a few persistent players getting lucky and getting their hands on a house each week.

Several hundred houses per world demo'd each year? Probably. Several thousand per world? No way. The 720 houses per world coming in 5.35 is likely more than than the number of houses demo'd in a year.

In either cases, the number is small compared to what is needed. Want a real solution to the problem? Pushed for a better instanced housing system instead of asking for demolition to never be suspended. It doesn't matter who owns what when everyone who wants a house can get one.