I can build you a fire proof house; however, you almost certainly do not want to live in it. It will be uncomfortable and unsightly. Avoiding disaster at all costs is not the reason we build cities or invest in homes.

The better question is, do we have the capacity to build a _city_, that would limit spreading fire damage even if one of it's neighborhoods completely lit on fire?

That will cost a lot less and still be a beautiful place to live.