I love the little bits of cute polish you put into this. This citizens bounce into their new homes and the player character squishes as he rolls around. The sounds effects sound great and work well with the style of the game. The mechanics are simple but you could see where this could be really addicting with added complexity. Great job on this!
I did notice that the player only squishes on a certain axis, so when you roll him over the squish effect looks a little weird. Maybe doing the effect with a shader would give a better result there.