Yes, we had up to 4 kids in a red cottage in North 5. It made problems with population growth or actually with the ratio of children to adults and went back to 3 as a standard. The birth rate was lowered in current Norseman/Ironman versions but I think it would still be an issue. As an additional option, larger houses for bigger families can be of course very interesting to play with. It could be large farmhouses on 5 x 5 or a Longhouse over 6 tiles. I put it on the roadmap!