Why won't an NPC go into his house?

Solution 1:

If your demolitionist has claimed a room offscreen, you may need to go far enough away that he teleports 'home'. He's not going anywhere because he can't reach his house in the first place.

Solution 2:

Kill demolitionist with lava. Then he will respawn after some time. And maybe he will choose more desirable place :-)

When NPC begin to live in house not suited for him, I kill NPC and destroy chair and table. And in next time NPC chooses another house :-) After that I place taken off object on their place.

P.S. Magma is a solution for every problem :-)