I was wondering if the number of animals I can design homes for is limited (I realize that sounds silly)? What happens when my town is "full"? Do animals ever move out like in the main games?
From what I understand, there is no 10 villager limit. You design all the villagers houses. Once you've done that you can enter the monthly competitions and design for the DLC villagers
Yes, there is no limit, but technically you can't design for all of them just yet- some are amiibo only (special cards) while others seem to be given only though SpotPass, and not all of those have been released yet. Once all the cards and SpotPass villagers are done, then yes, you can have all 350+ villagers. I'm at 293 I think I counted last time. It gets a bit much when it's page after page after page in the client list!!
I have been trying to design all of my amiibo cards recently and there is no cap, I have already designed a lot of the villagers but there are literally 100's of villagers to design for, it must be a nice big town they're all moving into. XD