I suggest you play the tutorial first, as completing it will give you two Achievements and teach you about making houses.
Once you have created a character and started a world, you will need
- wood (select axe and chop down a tree)
- gel (kill the slimes with your sword)
- dirt blocks (select pick axe and chop away at the landscape)
Find a level area and clear it of trees.
Switch to manual cursor and select dirt blocks from your inventory.
Build three sides of a rectangle of dirt blocks at least 6 blocks high and 10 blocks wide. You only need to make the walls 1 block thick at this stage.
Erase the bottom three blocks of either left or right wall.
Go to the crafting menu and craft a wooden door.
Select the wooden door and build it (right trigger) in the gap.
Now craft wooden walls (at least 32) and cover the inside of your house.
Craft a workbench, as this allows you to make more items, and place inside your house.
Now you can craft a chair and torch. Place both inside your house.
This will now make it inhabitable, and the Guide will move in to trigger the Achievement. While you are standing in the house, you can go to the Housing screen and assign the Guide to the house.
If you want a stronger house, use stone blocks and stone walls.