Correct Approach for tiling a building

I’m currently creating layers as so:

Group: House 1

  • House Rear Wall Ground Floor
  • House Ground Material
  • House Front Wall Ground Floor
  • House Rear Wall Second Floor
  • House Material Second Floor
  • House Front Wall Second Floor

and so on

Is there a different way of layering these properly or ?

This is highly dependent on your actual tileset and map orientation (which I assume is isometric, from your other posts). For example, if you have isometric wall tiles that are as tall as the wall, then you only need one layer per floor of the building. If you need to layer tiles together, then you’ll naturally need more layers, as you’ll no longer be able to rely on the render order within the layer.