I play on Sargatanas, which isn't the most populated server, but its not a backwater. I just checked Empyreum, where my house is, and there are six smalls that went unclaimed this cycle in either personal or mixed wards. Six houses that no one bought.

Okay, obviously this doesn't mean the system is perfect, but its a sign its getting better. A high pop server where anyone can just walk up and claim a small house is a good thing, and something we haven't seen for years.