Honestly the whole town system is a pain. You can't have too many NPC's in one area, you have to put them in the area they like best, monsters don't spawn in towns, and THE MUSIC WON'T STOP dang i miss the actual overworld music.
Terraria Community Forums
neoselket
Dapling
You could just put outposts everywhere with 2 npcs each
neoselket
Yeah but that takes forever. Building houses is already a huge pain, this update just makes it worse.
Dapling
Well I mean, you can just ignore the system completely. Literally nothing is required from it that isn’t new content.
neoselket
Expect that now when i have NPC's at my base i hear nothing but the town music 24/7, and i can't fix that without moving them all. Yeah music boxes exist, but i have to manually activate them when day/night changes, and you can only get them in hardmode.