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Since this thing is growable (all zoning buildings are growable). You need to have your building upgrade to lv5 for high-density Residential.
Yes, it randomly spawns so this will have the same chance of spawn as long as your zone is bigger than 3x4.
However, things that can prevent this are...
All your buildings in your city have grown to the highest level. Therefore, they cant grow or upgrade anymore. Unless you delete some buildings and hope that this will spawn. (Not recommended)
You have Hi-rise Ban policy on, which mostly affect last-level growable buildings.
The growable building has not reached the last level yet.
Hope this helps. Peace.