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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.

Race Building
Race: Human Human The Neighbourhood
Race: Elf Elf Hippie Hangout / Hippie Haven
Race: Dwarf Dwarf The Delta-Iota-Gamma Club / Fraternity
Race: Halfling Halfling The Hole / Trailer Park
Race: Gnome Gnome The Gnomefront / Gnomestead
Race: Orc Orc Orc Gables / Orc Mansion
Race: Goblin Goblin Money Pit / Bigger Money Pit