A typical 1st century family home in Palestine was not one room but several rooms, on one or two floors, around a common open courtyard. Each room opened to the central space, so one lampstand in the central courtyard could shine into all the rooms of the house.
The courtyard architectural type is well documented. The Neolithic site of Sha'ar HaGolan on the southern end of the Sea of Galilee has the oldest known example in the world, dating from 8,000 years ago. The classic four-room house of Israel’s Iron Age is another simple example, though by the time of Jesus, explains Wofford College’s Bryan McCane, the layout of the four-room house had changed:
“At Gamla, Yodfat, Capernaum, Khirbet Qana, and Sepphoris, excavated
houses from the Early Roman period consist of a cluster of rooms
around a courtyard and/or work area. Most of the rooms around the
courtyard were used as bedrooms and/or storage. The arrangement of
rooms is organic – new rooms were added when needed, as space
permitted. Like their four-roomed predecessors, these Early Roman
houses were well suited for habitation by extended family groups.
Several houses at Sepphoris also include a mikveh, or ritual bath.”
Many large, richly decorated courtyard homes of the period have been unearthed throughout the ancient Greek and Roman world. Archaeological sites in Galilee display both lavish and modest examples. Perhaps this is what Jesus had in mind.