As you unlock each race, a settlement for that race will appear on your city. These buildings cannot be leveled up, and pretty much only take space.
|Elf||Hippie Hangout / Hippie Haven|
|Dwarf||The Delta-Iota-Gamma Club / Fraternity|
|Halfling||The Hole / Trailer Park|
|Gnome||The Gnomefront / Gnomestead|
|Orc||Orc Gables / Orc Mansion|
|Goblin||Money Pit / Bigger Money Pit|