Which type of house often has terraced designs, sharing walls with neighboring properties?

The choice of a town house as the correct answer makes sense because town houses are specifically designed as a series of connected units, where each unit shares walls with adjacent properties. This terraced design allows for efficient use of space and often promotes a sense of community among residents. Town houses typically feature multiple levels and a uniform appearance along the streetscape, creating a cohesive visual identity.

In contrast, a duplex refers to a single building divided into two separate living units, which may not share walls with additional properties, as they typically stand alone or have a more distinct separation. Victorian houses are characterized by their intricate architectural styles and are not necessarily built in a terraced format, as they can vary significantly in design and layout. Modern multi-story houses can also exist as standalone structures without the shared wall element that defines town houses. Therefore, the distinctive terraced nature of town houses sets them apart and affirms their role in urban housing.