Blog Hosting Site

You would need to install WP once per person, and each install would need a separate install into a database.

Is there a better open source piece of software to allow for multiple bloggers?

Oh most certainly not ??

(But then this is a WordPress forum).

If you can better describe the service you wish to setup, you will get a balanced answer – promise ??
In the meantime, check out:
https://www.blogsome.com/
https://www.blogthing.com/
https://blogs.gnuker.com/

They all use WP.

or you use the multi-user version of WP which does the same as above but uses one db for everything. This may help ease management of your db. It’s an option. As for alternatives….I’m hard pushed to think of any multi-author systems other than the obvious well known ones. The best alternative requires you to part wiht your bank balance – WP on the other hand is free. There’s always a trade off, but WP is pretty much able to cater for your needs from what I can understand.

Where on earth is the multi-user version of WP? I’ve been looking everywhere but can’t find a download page for it.

https://codex.www.ads-software.com/Installing_Multiple_Blogs

This is a little late, but the code for livejournal is free. And it’s all about the multiple blog posting thingies. You can download it here:

https://www.livejournal.org/