Housing Minister Nick Smith has announced plans to build 196 new homes on surplus Crown land in Auckland's Massey East.
The $130 million deal with Fletcher Residential will see a mix of detached, terraced and duplex homes built, with the first ready for families by August 2017.
Fifty-nine homes "will be made available for social housing", says Dr Smith.
"The agreement is the first under the Government's Auckland Crown land housing development programme and follows one in Christchurch involving four sites and 1020 homes.
"Four Auckland sites, with the capacity for 940 homes, have been bought with the $52.2 million allocated to the programme in Budget 2015. Another $100 million was announced in Budget 2016 to buy more land."
Dr Smith says the deal will ease Auckland's "housing problem", which he blames on insufficient supply and "poor historic planning policies".
"This Crown land housing programme and development are part of the solution."