Sometimes permissive zoning laws don’t actually encourage positive urban development outcomes.

Example: Texas

Zoning has to both exist and be well-designed.

Texas zoning isn't nearly as permissive as Japan's. Setbacks are a big added requirement. Minimum parking requirements too though that is changing.

But it would not be legal to build japanese neighbourhoods in Texas.

Texas zoning is only “permissive” relative to other states. Relative to Japan it’s quite restrictive.

I bet you'd see natural market driven concentration around rail stations in Texas too, if they had a useful rail network.