He is in the middle of the city where there are two fountains. I think the house has a blue roof and a secret passage inside it.
Also, be aware that npc´s usually walk a lot, so he may be somewhere else. He may be in the church for example. This game is extremely interesting because it is one of the few where npc´s have routines (far before Morrowind or Oblivion tried to claim the title).
Also, have the manual in hand, because once you give the report, he will ask you some questions that you need to answer for him to allow you to leave the city. Without the answers you cant carry on the game.
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