For New Horizons purposes they are residents but I think just about everyone that has played the other Animal Crossing games is just used to calling them villagers so I'd say that either one of those terms are applicable.
I used to call the humans villagers because of Super Smash Bros. 3DS/Wii U. But I saw people referring to the animals as villagers, so I call everybody a villager.
To me, villagers are the animals, and I just call the humans "characters" or "player characters." "Resident representative" is a mouthful so I don't bother.
On occasion I'll venture to refer to my animals as "islanders," but when I describe the group as a whole it's always "villagers" because that's the general title the community has given them.
i’ve always called the animals “villagers” - i know they’re technically islanders/residents now but i’m just so used to calling them villagers that i’ve stuck with it aha
The Smash character being called a villager would be the only concrete proof I would need to say that the humans are the definitive "villagers". Honestly, though...I think it's just interchangeable. No one is really going to be confused or offended if you refer to the animals as residents or villagers. They live on the island...so, either wording is accurate. Technically, though...shouldn't they all be called "islanders" now?
A bit off topic, but I don't like the building being called Resident Services... sounds like an info desk. Town Hall sounds much better and at this point I think we qualify for town status. And I want to be Mayor, not Resident Service Manager or whatever.
Well if your title is Resident Representative, I would think everyone else would be called a resident since you represent them? I much prefer the term villager tho.
I tend to call the animals villagers or islanders, and I just call my character the resident representative/my character. If I made other human characters then I guess they'd just be residents/villagers/islanders. Although, I do consider my character to be a villager/islander as well even if I don't typically refer to her as such.
I've always referred to them as villagers. It might just be a holdover from other games, but I don't believe that has changed (unlike, for example, the change from Mayor to Island Representative for the first character that you create in your town / island).