1st: You need to create a town.
Map -> Edit Towns -> You then select temple position and city name etc.
2nd: On the Palette go to house.
Select Add tiles -> Place them like you would any other tiles, but only on the squares you want part of the house. (Be sure to place under the upper wall and left walls otherwise hangables will be cleaned)
(Also you don't have to edit the house cost in this menu, the config.lua has something with prices per sqm. So I just leave it as it is)
3rd: Select an exit, if you want players to be able to use alana sio, (place it outside the door of the house)
4th: Continue, this process for each house ^.^