This concept is nothing short of fantastic... but there's so much that's not explained enough and comes out of nowhere.
Why did her family in the original town act like peeps? That town was normal, as far as I could tell.
If the whole idea is the mysteriously appearing houses, where did the multi-eyed mutants come from?
And why did her aunt suddenly changed her mind? It's not like Ito's a stranger to tragic endings, so why not proceed with her plan after oofing the Ripper?
I think if this chapter was JUST about the multiplying town and the stabbings, it would've been more concise.