According to legend/myth - Albert Einstein wrote this as a small boy, and 98% of the world can not solve it.
Two things wrong with that sentence - 1) if I remember rightly he was too busy getting in trouble as school to be this creative and 2) I would imagine that 98% of the world would simply be uninterested in the puzzle. This puzzle has also been attributed to Lewis Carroll, and various other authors.
The version below is quoted from the first known publication in Life International magazine on December 17, 1962.
1. There are five houses.
2. The Englishman lives in the red house.
3. The Spaniard owns the dog.
4. Coffee is drunk in the green house.
5. The Ukrainian drinks tea.
6. The green house is immediately to the right of the ivory house.
7. The Old Gold smoker owns snails.
8. Kools are smoked in the yellow house.
9. Milk is drunk in the middle house.
10. The Norwegian lives in the first house.
11. The man who smokes Chesterfields lives in the house next to the man with the fox.
12. Kools are smoked in the house next to the house where the horse is kept.
13. The Lucky Strike smoker drinks orange juice.
14. The Japanese smokes Parliaments.
15. The Norwegian lives next to the blue house.
Now, who drinks water? Who owns the zebra?
And before I get strung up on a yardarm - let me offer a couple of "clarifications":
Each of the five houses is painted a different color.
Their inhabitants are of different national extractions,
own different pets,
drink different beverages
and smoke different brands of American cigarettes.
One other: In statement 6, right means your right.
One more: The houses ARE in a row.
As always, I have been known to be