@Mirefox, you might consider Isle of Tune Mobile. It mixes neighborhood design and, um, music. Weird, but fun to tool around with. In fairness, there’s virtually nothing city-building about it other than the sprites, so it’s really more of a music game with music reconceived spatially. But I bought it for my kids years ago, and have put several hours into it myself.
Absolutely not what you’re asking for, but appropriate at about the same age: DragonBox is the best edutainment I’ve seen. It’s good enough I sneak it into tangentially related conversations.
@Hustlertwo, I found Kinect Party for the 360 to be tremendous with kids as young as two. One of the reasons I got an Xbox One rather than a PS4 (though I finally have both, as of December) was the expectation that it would be ported and would continue to be wonderful for them. It never was, and nothing for the Kinect ever came out that made me want to try it on the new system. I may eventually get Dance Central, but the developer support for little kids’ games has been a real disappointment. All of that said, if you placed and calibrated it well, even the older Kinect did okay with little kids. Not great, but it wasn’t great with anyone, and the ones supposed to be better.