Everyone’s favourite indie developer Introversion have started a very promising development blog where they hope to describe the ongoing process for their new project Subversion. In one of the entries, Chris shows some prototype work on procedurally-generated cities, including a fascinating (and hard to play – use VLC Player) video.
The whole thing reminds me of an older post.
For generating houses and cities, there’s also this :
http://cb.nowan.net/blog/2006/09/06/procedural-modeling-of-cg-architecture/
cb