Well there are only 3 options:
A) Raise ground to as high as you can and build a house araund it (just a pillar)
B) Use stone (you can start with iron and then move to stone for even greater height)
C) You can use iron pillars and place fireplace on them BUT!!!!! you will not get a reseted buff (still good for visuals)

Example:
https://i.ibb.co/gjXR9XJ/trhjewkjwkj23232323.png
https://i.ibb.co/wNwmTNs/trhjewkjwkj23232324.png

P.s. dont ask me how much iron bars i used..ugh... (a whole largest boat full of iron)

But if you just need some light, torches, mushums lights, sufling heads, ice resistance potions always work well.