hey you know what would have solved this problem? Instanced Housing! or you know not restricting people to the 300 yard of land in each massive zone to place houses down. The housing zones are entirely arbitrary choices by XL Games. there are entire swaths of land empty of spawns, trees, rocks and other objects sitting right next to most housing districts, Especially on the east side. There are huge patches of land between zones that are flat and empty as well that could be given over to housing.
Instead of stubbornly sticking to this business model that works in a region of the world where people are used to paying money through the nose for the most basic convenience in MMOs but does not work in the western hemisphere.