You can keep both:
1. instance housing for all paid with in game money
2. ward system paid with real money monthly like additional retainer system for whom who want to keep some kind of neighbourhood (I know that a lot of people will be mad. Mostly players whom own an entire ward)

The things for me is, if a feature is too costly to be available for all players, it must be cut or a true equal alternative (apartment and islands are not) must be provide.

Sadly, there will no perfect solution what will please all players. There is no fair solution, just a direction to take.