There actually are too many wards.
In the lower population servers and even some of the mid-range population, many wards are largely empty. (Zodiark is one of the higher pop EU servers, and there are always plots available here) If players would evenly distribute themselves among the servers, supply and demand would be a lot closer.

If they then went and expanded the Apartment system, allowing for interior size upgrades and an outdoor instance option, there would be enough options for players to functionally use the housing system without competition.
Then the only competition would be for desirable plots, and let's face it, they're desirable because they're limited.