How close can villagers move to a street lamp?

[Hazysummerskies]

I know objects must have at least 1 empty space entirely around. Can other objects directly share that space with another or does it place it two blocks? I'm trying to keep villagers from making a home out of my roads on an area with little space. I'm not a fan of the Dorothy effect.

 

[Reindeer]

I believe they can set up one space next to it, but if you decide to move the PWP it has to be two spaces. That's how it worked when I moved a PWP near Knox's house anyway.

 

[Hazysummerskies]

Alright. What a pain. I guess I need to rebuild it then so there is only 4 spaces between the 2 street lamps rather than 5.