Is it possible to max out every household in Anno 1701?

Yes, it's possible. Note that this is not the case in Anno 1404 or 2070, where you need a minimum number of lower-class houses to support the upper classes (how realistic). High-end houses can contain a lot more people, while requiring fewer high-end factories (per capita), so your return on investment is better.

The usual strategy is to pick a large island and devote it almost entirely to housing. Fill other islands with production buildings and use trade routes to import everything your people need.

There are a few things to watch out for.

Firstly, don't get ahead of yourself. Make sure you've got an oversupply of goods for your current housing tier before you allow upgrades. Building too much too soon will push your expenses well over your income and put your finances into a death-spiral (as you probably know :) )

Secondly, trade your surplus to others. Selling manufactured goods is a huge source of income. I like to make sure I'm overproducing at least a couple of things at any given time, just for an extra revenue stream.

Thirdly, keep your taxes on the top tier of house as high as you can. If they're not going to be upgrading any time soon, there's no reason not to squeeze them for cash.

Check this link for more detailed info: http://www.citybuildergames.com/index.php?topic=1413.0