I have trouble understanding how housing quality affect colonists' lives. I build a big bunkhouse with 8 practical beds for overseers, so the building had -7 quality, and yet the memories of my overseers were all "spent the night lavishly" as if housing quality didn't have any impact. Also something i noticed since a few alphas is that ever since housing increase the limit of colonists, i never have room for the first 9 colonists or so if i build reasonably sized housing. Since the game more or less prompts you to build reasonably sized houses (2 beds 2 windows, 2 tables), that's what i naturally tend to build, but if you keep making houses with 2 beds eventually you'll get way more overseers than you have beds for them, especially since the starting 7 overseers have no beds. So you're basically forced to make 4+ beds houses if you want to eventually break even in terms of housing and/or never add any improvement that could increase your overseer count with is a bit counter intuitive.