LitRPG generally requires stats, so I would not count it. It might fit under progression fantasy however, as the increasing tech level and magic use push things forward a bit.
As for similar works, you're probably looking for things involving kingdom builders, like Kingdom Level One for an example.
https://www.amazon.com/Kingdom-Level-One-New-LitRPG-ebook/dp/B076BBCRJM
Civilization: Barbarians: A 4x lit novel Civ CEO: A 4x Lit Series
There are others, but I'm having trouble recalling their names at the moment, it's a whole sub-genre though a bit on the small side.
If you are OK with adventure type stories where people found a town or group then these others might be good: Stonehaven League by Carrie Summers (this is more of a 50:50 mix of town building and adventure) Irrelevent Jack by Prax Venter Isekai Magus by Han Yang Monsters and Legends by Ivan Kal
Just finished reading Kingdom: Level One and it wasn't a bad read but I'm a bit unsure about continuing the series. The MC's progression is very, very slow, and even towards the last chapters the MC is still complaining to get back to the "real world" even while fully acknowledging and accepting his new circumstances. Towards the end chapters I was thinking to myself, "C'mon, let's get on with it!"
The books aren't on KU so any reviews from those who've read the entire series?