You can quickly build a house in Terraria by placing wood in a 5x10 square lined with walls. Add a doorway, table, and chair to complete the living quarters.
Farm wood. Convert enough wood into background walls for the living area, and reserve the rest for the outer walls.
Place wood in a 5x10 square leaving three spaces open for a doorway. Add in background walls. Create a table and a chair. Add these two objects to the living area. Last, add in a light source. Your home has just become an acceptable living space.
