When considering the wall solution, don't forget that sound from the other side could also be "reflected" back to you. I am currently sitting at my parents' newly designed garden. I hear the immediate neighbors pleasantly little over the 1.60m high natural stone wall (ok, they aren't listening to Schlager music at the moment), but I do hear the neighbors on a completely different side who are apparently holding a Kniffel tournament right now.
What I mean is, maybe this doesn't really help you, and then you have invested time and money and still end up with frayed nerves. What speaks against saving a bit and opting for a proper soundproofing ready-made solution? My in-laws have such walls between the terraced houses, and it surprisingly reduces noise very well.