Canadian cities take wooden skyscrapers to new heights
theguardian.com
theguardian.com
Norway's Mjøstårnet however (which took the palm from Brock) is structurally fully wooden, concrete is only used as stabiliser for the upper stories (inbetween the upper 7 stories to limit swaying), it's not load-bearing.
Area separation wall systems [1] are about as close to "wood on the property line" as is allowed. But technically the gypsum board is the wall between structures (and for practical purposes both structures need to be built at the same time).
[1]: http://www.usg.com/content/dam/USG_Marketing_Communications/...
I live a few miles from the largest in Norway[1], and if I recall, it's all exposed. Perhaps some protection is added as of late. However, I also know that using oil-based paint on the cladding increases the risk for rot if water gets trapped inside. How do you need protect exposed wood for centuries to come..
Modern wood materials can be very technical and require less care. I would imagine that the exterior walls are heavily treated. Pressure-treated lumber can be very rot resistant. How resistant depends on how much you add chemicals. Wood can treated so that it's not rotting in direct contact with water and soil if needed. Modern preservatives are have soluble copper in them. Antimicrobial properties of copper are well known. If you pressure treat wood with these preservatives microbes don't rot them.
It would be neat if you could plant a seed and it would automatically grow into a house.
Woodpeckers can be a problem -- they will occasionally try to nest in the side of a house. They also like to peck on metal siding. I think they do it to attract mates?