Well the obvious one for me is The Picture by Loudon Wainright III.
Also, Jack Gets Up by Leo Kottke, and pretty much any of Robert Earl Keen’s songs.
I was also going to say this one. Anecdote: this summer I went on a four-hour fishing trip with some people from work. Literally less than two minutes after we got on the boat, this song came on the radio.
“Kim” - Eminem
“Allentown” - Billy Joel
Steve Goodman’s City of New Orleans is a good example of painting a picture with words.
Townes Van Zandt. Many of his songs do this, but these lines from Pancho & Lefty are posssibly the best -
“Livin’on the road my friend
Was gonna make you free and clean
Now you wear your skin like iron
And your breath’s as hard as kerosene.”
For a more recent example, Dust Bowl Dance by Mumford & Sons is astonishingly vivid. I’d like to quote the whole song, but that’s not allowed so here’s a snippet.
“There will come a time I will look in your eye,
You will pray to the God that you always denied,
The I’ll go out back and I’ll get my gun,
I’ll say, “You haven’t met me, I am the only son”.”
Too many realistic pictures to choose from. So I’ll mention Bob Dylan’s “Desolation Row,” which is dada.
A couple more that have come to me. I saw an Iron Maiden tribute band tonight, and it reminded me how evocative their lyrics are. Here’s an example, from Hallowed Be Thy Name -
“I’m waiting in my cold cell, when the bell begins to chime.
Reflecting on my past life and it doesn’t have much time.
'Cause at 5 o’clock they take me to the Gallows Pole,
The sands of time for me are running low…”
And for someting completely different, but no less evocative, from Richard and Linda Thompson’s masterpiece I Want To See The Bright Lights Tonight -
"There’s crazy people running all over town
There’s a silver band, just marching up and down
And the big boys are all spoiling for a fight
I want to see the bright lights tonight
Meet me at the station, don’t be late
I need to spend some money and it just won’t wait
Take me to the dance and hold me tight
I want to see the bright lights tonight"
The Stones’ “Jigsaw Puzzle”. It starts off as a typical 1960s London street scene but then gets out of control by the end.
Strange Fruit by Billie Holiday. Can’t get much more evocative than that.
A whole bunch of Leonard Cohen’s songs.
The Airborne Toxic Event has has a few songs that vividly envoke images (or situations) to me.
Sometime Around Midnight describes meeting an ex and discovering that they are over your relationship, and you’re really, really not.
And she leaves
With someone you don’t know
But she makes sure you saw her
She looks right at you and bolts
As she walks out the door
Your blood boiling
Your stomach in ropes
And when your friends say, “What is it?”
You look like you’ve seen a ghost
Also, All I Ever Wanted describes laying next to someone you care about, but realizing that you aren’t happy with them anymore…
I can only say these things to you while you’re sleeping
I hear the hum from the wires and the sounds of the morning creep in
I lie awake and pretend you can hear me
You tell me that you’re scared that you’re turning into your mother
I feel myself turning into my father
As we lie to each other like they do and say we’re still happy
I guess its easy when you’re young and you still want it so badly
I turn over again and feel my heart beating faster
I stare out the window and I think I might scream
I caught you knockin’
at my cellar door
I love you, baby,
can I have some more
Ooh, ooh, the damage done…
I hit the city and
I lost my band
I watched the needle
take another man
Gone, gone, the damage done.
Saw the thread title and came in to post just that 
Was just listening to it too, haha. Gorgeous song. A lot of Christmas songs do too, like “In the Bleak Midwinter.”
As for others, “Goodnight Saigon” by Billy Joel comes to mind.
Who the hell’s John Eddie?
Carly Simon’s You’re So Vain.
First 2 I thought of were Mary Chapin Carpenter’s I Am a Town, and Dylan’s Tangled Up In Blue. A lot of MCC’s songs fit this bill, but then I think she’s a lyrical genius…
‘Temple of the King’ by Rainbow. Very medieval fantasy-world kind of imagery.
How about the old romantic favorite, Sink the Bismark!
Clair de lune, Debussy
D.O.A., Bloodrock
Timothy, The Buoys
Dylan’s Lily, Rosemary & the Jack of Hearts.
Juice Newton’s The Queen of Hearts.