Try the edit town option under the (...) button. That way you can have one neighborhood and multiple sim households.
Also about the game's options: Story progression controls if other sims can change their relationships have children and change their jobs and what not. Age just controls whether or not sims age.
Just fyi in-case you decide to run two households and don't want to go back and forth and find some new babies.
thanks for answering this question, i was wondering the same. is it true that you lose wants when you go back to a family after playing another? i saw this as a warning and didnt do it.
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Also about the game's options:
Story progression controls if other sims can change their relationships have children and change their jobs and what not.
Age just controls whether or not sims age.
Just fyi in-case you decide to run two households and don't want to go back and forth and find some new babies.