Housing Minister Phil Twyford has announced the first of the Government's KiwiBuild homes.
It's purchased 29 hectares of land at Unitec's Mt Albert campus in Auckland, about 9km from the CBD.
Around 3000 to 4000 homes are expected to be built there.
Too many Aucklanders are suffering because of the housing crisis," he said on Sunday morning.
"This Government will not sit around while children are living in cars and families are cramped into overcrowded housing. We need bold action to solve this.
"There will be a mix of affordable KiwiBuild homes for first-homebuyers, public housing and open market houses.
"This is a beautiful and historic piece of land with natural features such as the Oakley Stream running through it. It's close to education, employment and public transport. This new community will have open spaces, new parks and shops.
"We want to create a place for people to put down roots and to live, work, learn and play, for generations to come."
Unitec says the build will create a "vibrant space" around the campus. It sold the land so it could spend more on development and maintenance.
"We have enjoyed this stunning campus for 30 years and it will be fantastic to open the space up to others who will make it their home, grow businesses, and create a community," said chairman Lee Mathias.
"All proceeds of this sale will support the delivery of our teaching and learning programmes."
"We're looking forward to working with the Iwi of the Ngā Mana Whenua o Tāmaki Makaurau collective on this development, consistent with the agreements in their Treaty settlement," said Mr Twyford.
The Government was elected on the promise of building 100,000 affordable houses in 10 years under its ambitious KiwiBuild programme.