Would a raffle system be that hard?

[ItMe]

Ok look. Suppose we have 1000 people, 100 of which are willing to camp a placard. The odds are like so:
100 people have 1% chance of getting a house
900 people have 0% chance of getting a house

[...]

For 100 people the odds became worse, but for 900 people they became better because they had no chance at all before.

Those 900 people didn't have "no chance," they had the same chance to participate as everyone else and they chose not to.