The town is the location of your home and your neighbor's homes as well as the gate, the town hall and the businesses. Your town features many terrain features as well, different levels, rivers and an ocean at the bottom. Every time you restart the game, you get a different layout of your town and new neighbors (animals to live with). It seems that you are the only human in the town and we do not know much about it's history.
For full article see Player Houses
Player Houses are your home in the world of Animal Crossing. Originally they only have two rooms but you can expand that to a mansion (Wild World) or a house with an upper floor middle floor and basement (excluding save room) for ACPG and ACCF. There are 4 player houses in your town each with a different colored roof (red, blue, yellow and green). These can be swapped in the same way as expanding your house. Both take around a day to complete.
For full article see Neighbor Houses