I usually channel out "streets", wide main passages about 2 to 3 Z-levels high. It looks pleasant and a lot of lucky d0rfs gets glass windows that actually work.
For the labourers, I dig out some basic tenement housing, some 2x2 rooms along a corridor that leads out on the street, usually six per floor. They swallow up a lot of dwarves, and are a bit more fun to make than dormitories.
More advanced dwarves get bigger flats, maybe a house to themselves. Legendary craftsmen gets a house with a private workshop at the bottom floor (can't wait for the economy update, and I get to build actual shops). The bigger the dwarf, the bigger the house.
It's a lot more of a palaver than just cobbling a big public dorm together, but it doesn't feel tedious, probably because there aren't lots of it to go through at once, and you get an opportunity to lord over individual dwarves a bit more directly. Assigning bedrooms is a lot more fun when you stick some legendary potter out in the absolute slums and can picture his reaction. Even better if you want to punish him, you can evict him, and with no big bed surplus to surf on, he has to sleep on the floor. Crying. It's a very hands on bedroom approach, but the fun kind.
I could simply not assign the rooms and leave it to the Urists, but I don't want some riff-raff claiming the nice flats slated for the nobles.