It takes a looong time to get level 5 - and i think it is supposed to.
click on the city status button (the big circle in bottom center toolbar) and it will bring up city info. Look at 'city tiles' and you'll probably see you have zero tiles available. You'll need to tear something down to build more housing.
Also, the best way to get a level 5 city is to get the world improvement 'great theatre' under the civ research line. With a pub and inn and a palace you should be able to raise your prestige high enough to get level 5 fairly quick. After that you can tear down your theatre and palace and move them to the next city.