I have a feeling that even if I spent the summer driving and searching, I wouldn't find that kind of house arrangement in my home city. Though unlikely, I could perhaps imagine some kind of special situation having driven two houses getting built so close to each other, but would they still have bedroom windows located like that? That seems exceptionally improbable.
However, I reckon in many Japanese cities, and some other parts of East Asia, where population density could have been extreme for centuries, things are indeed different. City zoning would maximise the use of available land and greed would have made land owners, a long time ago already, split their land into tiny plots.