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I personally saw someone streaming the Animal Crossing New Horizons Happy Home Paradise DLC and was amazed by how many options existed to customize the islanders' vacation homes (with each islander giving you a theme to stick to.) I know its not a Steam game but for house decorating in a grid style similar to DQB but with many more options, its probably right down her alley.
"Farm Together" beyond managing the outdoor farm spaces, players can also decorate the interiors of their houses. You can personalize and furnish the inside of your home with various furniture items and decorations.
The game provides options to customize the layout and design of your house, allowing players to place furniture, rugs, wallpapers, and other indoor decorations to create a cozy and personalized living space. This feature adds another layer of customization, letting players express their creativity not only in the farming aspects but also in designing and decorating their indoor spaces.
It seems this game got more polish than Portal Knights so it probably has more decorations, but we've been having fun building a family castle with all kinds of cool interiors.
In this game you can make your furniture from scratch and share the designs with the community.
There are crafting competitions quite regularly.
The collecting of the materials can be kinda tedious though. Try to get it on a sale.
Has some coop not sure about 'local'.
https://store.steampowered.com/app/1380420/?snr=1_5_9__205
In this game you can build Towns and customize them to a certain extend, but you don't get to build everything from blocks.
Very relaxing game. Has a few annoying platforming sequences and gets a bit repetitive after a while but still pretty nice and runs well even on a Laptop.
No coop.
https://store.steampowered.com/app/1062520/?snr=1_5_9__205
Another game where you have to build a new town.Though again it is mostly the layout and decorations.
Here you got coop not sure about the 'local' part though.
https://store.steampowered.com/app/1372320/?snr=1_5_9__205
This is more of a puzzle game.
No coop last time I checked.
https://store.steampowered.com/app/233860/?snr=1_5_9__205
This one is basiaclly survival, and you can build towns, and bases about anywhere. The difficulty is brutal though. And the decoration options are limited.
The good thing is this game has tons of mods, and if you like modding games yourself, you can make your own ones as well.
No coop.
https://store.steampowered.com/app/1229260/?snr=1_5_9__205
Build a town and invite monster girls to live there...
Again no coop.
There is also No Mans Sky (base building in space) and their next game Light No Fire (just recently announce - no release date).
But really nothing compares directly to DQB2. It's got a certain charm that isn't easily replicated (or hasn't been).
I'm keeping an eye on light no fire and enshrouded. Thanks
https://store.steampowered.com/app/972660/?snr=1_5_9__205
It just has not much building and it is side scrolling with platforming.
Then the fact that it's in the Dragon Quest universe also helps.