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Shotgun is easier to hit with. .357 has a lot of flash and will affect your night vision and the report, being supersonic, is likely to be more destructive to your hearing than the shotgun.
A shotgun slug, buckshot or even bird shot is FAR heftier than a 110 grain or even 200 grain bullet. 550 grains (1 1/4 oz, or 7/8 oz is 380 grains) at 800 fps from a shotgun carries a lot more momentum than a 158 grain slug at 1400 fps. Almost twice with the heavy load and 37% more with the 7/8 oz. Energy, because of the velocity is a narrower margin, but with the heavier load is still there.
For a stationary defense, the shotgun (especially if you add an 18" barrel) is the winner. It does not preclude you having both, but considering your arsenal, I would look at upgrading the other defense tools. How are your locks? Alarm system? Exterior lights?
As far as exterior walls, if you have a defensive center, there will be a "kill zone" in the approach(es) to that position. If you harden the wall behind that zone, you will have a backstop you can count on to protect your neighbors. A piece of heavy furniture. A mirror with real wood backing. Tall (and full) bookcase.
The nice thing about shotguns is that at across-the-room distances, even small shot has a heavy impact. At across-the-yard distances, especially after penetrating a layer of wallboard and exterior siding the spread of the pattern makes for much smaller wound channels in your neighbors, if any. By the time those small bird shot pellets breach your neighbor's wall, they have little energy left.
Good luck,
Lost Sheep
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