Homely is used in N. America as a uphamism for ugly. Usually applied
to young girls. In English English it just means cozy and comfortable
and is only applied to residential dwellings.

That would be euphemism. Which is also an incorrect use of the word. Homely in the US is the functional equivalent of plain, even ugly. Which is its direct meaning.

https://www.merriam-webster.com/thesaurus/homely

However, a true euphemism would be something like "lacks prettiness" or "she does not present well" as applied to a young girl.

https://www.merriam-webster.com/thesaurus/euphemism

Funny thing: The average native English speaker recognizes about 20,000 words, and uses about 5,000. College graduates roughly double the recognition number and the use number. This against an estimated 1,022,000 words (including obsolete words, derivatives and jargon) in the English Language, and 171,476 words in current use (OED).

Guys and gals: Words are tools, often weapons. Working with dull blades is dangerous - to the user and others as well.

Peter Wieck
Melrose Park, PA