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However it makes sense to build a library next to a school as they both are counting in their own way towards science and conveniently take as much space as two houses next to each other (4x6 and 8x6 respectively = 12x6).
Then I also enjoy building a warehouse next to taverns as this is also taking the same space as two houses next to each others and it makes sense to have multiple dotted over your kingdom so that your people don't run distances to one loosing precious time.
Same for markets, I try to have them spread out so it gets decent coverage but also ensure that not too many people work in markets, and I additionally try to have people as haulers next to farms and production centers.
On Deity it is important to reduce walking distances thus I can't just plop down a huge area with houses as people literally starve from walking to get food ...
Thus I opt for building smaller housing areas and grow gradually, trying to leave an odd space for garden bushes might also work in your favor for housing happiness.
But overall I recommend to grow your city naturally as you go, watch your citizens daily routine and see where they waste most of their time and check how to optimize based on that.