Platform(s): I think I had it on a handheld device, so Nintendo DS

Genre: Animal Crossing like (You play as a person who moves to a town and helps restore it)

Estimated year of release: I played it over a decade ago

Graphics/art style: Top down cartoonish style. Like animal crossing but with humans

Notable characters: None, all the residents were humans following a trope. E.g. "The exercise enthusiast" "The baker" "The goth guy" etc

Notable gameplay mechanics: The main gameplay loop was that you'd forage/gather for artistic influences, then build furniture for the other townsfolk and style their houses using those influences and simple geometry style blocks. For example: The goth character wants a new chair appropriately themed. You'd go out and collect cobwebs and catch spiders then use those as paint prints to pain different blocks to increase its "spooky theme" to make the goth character happy.

Other details: I'm fairly sure this wasn't the result of a fever dream.