Irvine, California: A Model for Building New Cities from Scratch

As the country grapples with a housing shortage, the planned city of Irvine offers a blueprint for efficient urban development.

Feb. 23, 2026 at 3:08pm

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Irvine, California, is a unique example of a city that was almost entirely planned and developed by a single private entity, the Irvine Company. Unlike typical U.S. suburbs, Irvine has a dense employment base that includes a university, manufacturing, and high-rise offices, making it a true city. This model of building new urban areas on vacant land is gaining appeal as a way to efficiently produce homes and expand businesses, with investors and tech billionaires backing similar concepts in places like Starbase, Texas, and a proposed city north of San Francisco.

Why it matters

Irvine's model of private, planned development offers a potential solution to the country's housing shortage, which economists estimate at 4 to 7 million units. Building new cities from scratch on open land could be an efficient way to boost housing supply, especially on the urban edge where land and construction costs are lower. However, past attempts at creating 'new towns' have largely failed, making Irvine's success an important case study.

The details

The Irvine Company, a former grain and citrus farming operation, started developing Irvine's farmland during California's post-WWII boom. In the late 1970s, the company was taken over by investors including Donald Bren, who is now the sole owner and one of the country's richest people due to Irvine's growth. The company planned most of Irvine's parks, streets, and structures, and continues to own a majority of the city's apartments, shopping centers, and offices.

  • The Irvine Company started developing Irvine's farmland during California's post-WWII boom.
  • In the late 1970s, the Irvine Company was taken over by investors including Donald Bren.

The players

Irvine Company

A former grain and citrus farming operation that planned and developed almost all of Irvine, California, including its parks, streets, and structures. The company continues to own a majority of the city's apartments, shopping centers, and offices.

Donald Bren

The sole owner of the Irvine Company and one of the country's richest people, thanks to the growth of Irvine.

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What they’re saying

“The idea that you can conceive of a city that addresses all the ills of the current city is philosophically a wonderful goal. I've spent a lifetime trying to understand why most new towns are not very good.”

— Richard Peiser, Professor of real estate development at Harvard, co-director of the New Towns Initiative

What’s next

Investors and businesses are backing new town and city concepts similar to Irvine, with plans for communities like Starbase, Texas, and a proposed 400,000-person city north of San Francisco. The success or failure of these new developments will provide further insights into the viability of building cities from scratch.

The takeaway

Irvine's model of private, planned development offers a potential blueprint for efficiently producing housing and expanding businesses in response to the country's housing shortage. However, past attempts at creating 'new towns' have largely failed, making Irvine's success an important case study on overcoming the complexities of building a city from the ground up.