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Comments
For 60 workers:
5 blues have a base landspace cost of ( 5 x 25 )=125 squares, costing (5 x -25)=-125 happiness.
2 Level 5 Reds have a base landspace cost of ( 2 x 25 )=50 squares, but they cost (2 x -145)= -290 happiness.
Add in 3 lakes ( 3 x 38 )= +114 happiness, and it takes up exactly the same landspace, with -176 happiness.
Blue level 1 are still superior with regularly available decorations.
Add in 3 event decors ( 3 x 74 )= +222 happiness, and it takes up exactly the same landspace, with -68 happiness.
So, Level 5 Red housing ultimately trumps Level 1 Blue houses, if one has enough +74 event decorations.
I am still aiming at all blue houses, which I never expect to be able to upgrade beyond Level 1, due to time saved during upgrading Red houses, and the rarity and short duration of the Architect Event to get those houses to Level 5.
Numbers for Level 4 housing: Quick and untidy Level 4 comparison:
2 Blue Level 1 = 24 workers = -50 happiness in 2 (5x5) spots
1 Red Level 4 = 25 workers = -120 happiness, add in 1 Lake = -82 happiness in the same space, but one more worker.