Houses are items crafted by Construction Workers. They are required to expand beyond four Villager slots. Each village has its own unique house item. To set a house down for a new villager it must match the current village you live in. This means if you live in Oceandome, you can't set down a Dragonsmaw Manor house there. It has to be an Oceandome house.
See also: Durability
Houses take 70 wood and 70 minutes to build a 50 durabilty house with the base skill (50). The amount of wood you need and the durability you get increases proportionally with your skill, caping out at 350 wood and 350 minutes for a 250 durability house at 250 skill.To increase the durability past 250 you have to use a House Durability Potion or a Snow Festival Gingerbread Fairy.
A villager with a broken house.
The durability goes down by 1 point per day, meaning that it would take 100 days for a house with 100 durability to break without any repairs made to it. Breaking a house does not release or abandon the villager. The villager will simply not be able to work until the house has been replaced or until they are moved to an FC slot, which are the first 4 slots that doesn't need houses.
The location of the option
Remodeling the the house gives the user a backdrop, dependant on the village they are in. Furniture can be added and moved around on top of this backdrop to create a scene of the user's choosing.
Users can also visit other villagers in the neighborhood, which will grant users 5 each time they visited a house. Users can only visit a house every 5 minutes. Users can view the guestbook to see who has visited. Gifts can also be left at a house, however only furniture items can be gifted this way.
Decorating the House
Users can decorate the house with the Manage House option. Every furniture in the user's inventory will be usuable. Furnitures can be added by selecting the Add Furniture on the right sidebar.
Example of a decorated house.
Once the user has added at least one furniture, it could be moved and resized by clicking on the item name. However, the furniture can not be rotated. Likewise, the layers can be rearranged by dragging the item up and down the sidebar, with the lowest being the background item and the topmost item being the foreground. When it's done, the user must click Update Furniture in order to save the layout.