Hi,
Starting in your 1.8 version, the buildings that go with the corresponding streets continue to be built outside of the wall. It seems they are sprouting off of the extended road from the outside of the wall. I'm not sure if this is intended behavior but the buildings outside of the wall have a nasty habit of cutting into the gatehouses of the wall. This behavior is not seen in 1.7 version. The ones I have seen sprout on the south and east side of the city.
I hope this helps