it already seems like Leon's home is it's own small settlement, so why not make a side quest to build one connected to Leon's home. the side quest can become available at the start of ch 3's lake zone, as that's the point i started to consider Leon's home and yard to be a bit crowded, and for each new chapter zone a new area could be expanded through a new side quest should any zone start to become crowded or should it be deemed reasonable to build special accommodations (like a dedicated lake zone for aquodic guys)
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That does sound like a cool idea! I will maybe start making early plans to implement this idea. Perhaps maybe I can make a special time for Leon's home when using the bed where each monster can ask Leon for a quest to get their own space or if their quest is already done, will simply be around somewhere in the house and maybe interact with other monsters. (Based on the size of my current idea, this would probably be its own update or maybe something I do on the side of each update)