I think the best thing they could do is make apartments expandable (and maybe cheaper).

They should be able to be at least two bedrooms and they need an outdoor patio/balcony area.

This would solve everything because in my understanding apartments are instanced, which makes them much less server load than neighborhoods. This would allow every player access the housing system without a demolition timer.

Ironically the only place I run into other players in the neighborhoods is outside the apartment building.