You cannot add a second floor to your house in The Sims 1 for PlayStation 2. The game engine only supports single-story construction.
The PS2 version of The Sims 1 restricts players to one level. You can expand horizontally—creating large mansions with many rooms—but vertical building is not a feature. This limitation applies to all console versions of the original The Sims.
If multi-level building is important to you, consider these later entries in the series:
Unfortunately, there are no cheats, mods, or workarounds to enable a second floor in the original PS2 release.