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 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.
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.