In order to upgrade your home into a homestead, you will need to start as a shelter.
From there, you will need your upgrade requirements which will be mentioned in the shelter window.
First, you will need a town center of tier 2.
You’ll need a basic well.
Next, you’ll need 30 desirabilities to the area. You have to build some gardens and the market which will increase the desirability of the area.
After that, you will need two food types and some herbs which can be meat, grain, fruits, protein, vegetables, and dairy.
That’s how you upgrade your housing.