[tdrdt]

Here a very interesting talk by Oskar Stålberg where he explains how this works: https://youtu.be/1hqt8JkYRdI

[btown]

And here's another, slightly more technical talk from him about the "wave function collapse" algorithm he uses for procedural generation in his games: https://www.youtube.com/watch?v=0bcZb-SsnrA

[tdrdt]

Ah thank you. I was in fact looking for that talk!

What I really like about this is that the base grid is not straight. Therefore the buildings are arranged in a very European style.