To answer your question, absolutely; they are still being built today and increasingly in some regions. The material seems old-fashioned but with modern building construction techniques, they come forth structurally sound and fire-resistant. They become legacy buildings in this modern times.
They are not outdated, instead they are evolving to fit the times.

A modern mud house is a house built to suit modern times using a combination of earth-based materials such as clay, laterite, stones, bamboo, lime, natural fibers, etc., combined with modern architectural design techniques. It includes the modern spaces for sitting room, bedrooms with individual toilets/bathrooms, kitchens with pantry and can be fully equipped with modern facilities such as solar systems, smart and automated electrical appliances, etc.