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There is an upper limit in height but you can build really tall structures.
See: https://youtu.be/3RIB1G6ZFKI?si=m8UXKkFh8o8KFh8z
For what you are suggesting you can raise the terrain to its maximum height then stack the building blocks on each other to get really tall structures.
You can use the decoration tool to get the timber frame that will give you a fence on a building.
I hope my answer has helped.
Edit: this video also shows how you get height and a range of features at elevation that I hope helps and inspires.
https://youtu.be/oOeXNU3-m5Y?si=djl13QGgGBITpoMl