I'm not sure if this is explicitly written, more accurately, not written into the zoning laws, but in general, residential and commercial properties are fairly mixed in Japan. I live in a fairly residential neighborhood, but even here we have little pockets of business. Around the KGU dorms, there are houses and businesses in about a 50/50 mixture. It's also pretty common to see a tall building with a restaurant or liquor store at street level and apartments above.
The building pictured here is near my house and is an interesting fusion of a residential home with a commercial facade facing the street.
This sort of business on the ground floor and apartments above is common here; Atlantic Avenue ("Main Street") in Morris is largely structured this way. Historically this is very common in much of the world, with small shopkeepers (or even small factories) on the ground floor and the family's home upstairs. Cool that it's still happening there.
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