I just bought a home in diamond city and there’s very limited options on what I can build. Is it ever possible to get more building options for this place?
You'll have to unlock the necessary perk in order to craft what you want. What you are able to craft is directly related to which perk you unlock, not your level. Please check the included link to the fallout wiki perk page in order to figure out what you want to craft and what perk you need.
The second problem with crafting at the Diamond City location is lack of supplier lines.
You cannot link this settlement with another, so you'll have to manually haul in crafting resources.