This is a function of affordability and low regulation. Another place I’ve been to which has so many lovely tiny little coffee shops and boutiques which may also happen to be someone’s home is Lviv, Ukraine.
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I almost opened a cafe/bar a couple years back, I even had a reservation deposit on a location, had the money to renovate it, had money put aside for it to fully fund the rent and utilities and staff for a year, but in the end I scrapped the idea because of the bureaucracy.
I needed: a hospitality trade license , a certificate from the inspectors for food hygiene and public health, a certificate for fire/gas/electrical safety, registration with the customs office, staff needed to do training for food handling, and I needed to register the kitchen with the regional hygiene office. It's not unreasonable, but it's a lot of bureaucracy for something I wanted to do as a fun side project