To what degree does the built environment of cities shape the social environment? In this article we use a Schelling‐like agent‐based model to consider how changes to the built environment of cities relate to changes in residential segregation by income and ethnicity. To develop this model we exploit insights from a high resolution historical GIS which maps 100% of the population of Newark, NJ in 1880. Newark in 1880 had a complex social landscape characterized by areas of significant social and economic segregation and areas of relative integration. We develop a Schelling model capable of reproducing these residential patterns. We use this model to explore the decentralization of housing, a specific phenomenon associated with the demise of the walking city in the late 19th century. Holding agent preferences constant, but allowing the landscape of the Schelling model to evolve in ways that reflect historical changes to the built environment, produces changes to the social landscape that are also consistent with history. Our work suggests that changes in residential segregation do not necessarily imply changes to individual attitudes and preferences. Changes in residential segregation can be generated by changes to the built environment, specifically the geographic distribution of housing.