It effectively has no zoning which means you get oil processing plants built next door to elementary schools.
The Austrian Economists will jump in here and say that's why certain private property developments buy the equivalent of "sky rights" (or "land rights" I guess) with adjoining properties to effectively create their own zoning.
It’s flat and ugly there, but surprisingly socially vibrant, open, and interesting in large part because barriers to entry are so low and life is so affordable.
Do you have any examples? This doesn't seem likely to me.
Houston may not have zoning but it has plenty of code that mandate car dependency and huge amounts of driving and therefore suburban blandness.
Regulation versus deregulation is a barren framing, the real problem is absolutely terrible urban planning rules in the US that have created our bad situations. As a field, it would probably be better if it never existed.
Maybe I am next to your house. I want to have a hog farm or a 24/7 very loud factory.