It seems regardless of which structure I build they're not really using them. For example in my last build I built a luxury apartment and the most I ever saw in there at once was 4 people and I have and yet I have a bunch of people walking around griping they have no where to rest when there was plenty of room in said apartments.
Also the crematory doesn't seem to work very well, unless that's by design and need multiples of them. Otherwise I have dead people everywhere, heh. Maybe you implement a soylent green factory?
Midget soothsayer robs bank! Small medium at large!
Housing is working correctly though our UI sometimes makes people think it isn't (we've tweaked it slightly for the next version to avoid this confusion).
Citizens only enter a shelter to rest and it only takes them about about 20 real-world seconds to rest if you're playing at max speed. So it would be quite rare for you to actually see somebody inside the building sleeping as they spend 95% of their life not at home but working. Also, they will always prioritise finding food or drink or healthcare over rest even if they're dead tired.
Think of it as if you're building housing "slots" for people to rest when they need it. As long as your number of homeless is 0 you're doing great.
Crematory workers pick up the oldest corpse in town, not the nearest, which also confuses people. Gonna change it to nearest at some point.