Tavern upgrade doesn’t allow me to have more citizens

So, I’m trying to recruit more citizens, but I don’t know how. I thought that a tavern upgrade would give me more space, but it didn’t. I don’t know how to add more housing, and I don’t have a ‘house’ block option. I do have a extra bed that I placed in the tavern, but iit still doesn’t allow me to invite a new citizen. I tried creating a second tavern, and I’m not able to place it.