Though you may have heard that dogs don't see colors, the truth is that they do, albeit on a narrower spectrum than humans.
They can see yellows, blues, and violets very well, but reds, oranges, and greens are more difficult to distinguish.
However, reduced color vision allows dogs to have more receptors that allow them to see well in low light and track movement.
If you want to redecorate your dog house, stick to blue and purple colors.