cecil: I'd say yes but he never will ;-)
Gnostic: Well I am waiting for him to ask for a hint if he is stuck......
It's been a while since I last solved Einstein's Riddle, but that was fun.
House #1 is blue, and has a Dunhill-smoking, tea-drinking Norwegian in it who raises dogs.
In house #2 is a person of unspecified nationality (only 3 were mentioned) who raises horses, smokes Blend, and drinks Coke. The house is yellow.
House #3 is inhabited by a German who drinks milk and spokes Pall Mall while raising birds in his lovely white home.
House #4 is green, filled with cats and a British coffee drinker who takes care of them whilst smoking Prince.
House #5 is red, has dogs in it, and some person of irrelevant nationality who smokes Bluemast and drinks beer.
So, to answer the question, the blue house and the red house have dogs.