Between 3000 and 4000 low cost homes are going to be built on land occupied by Auckland tertiary institute Unitec.
Housing and Urban Development Minister Phil Twyford has announced the plan, which he said would help address the city's housing shortage.
The development would pop up on Unitec's Mt Albert campus and was the first phase of the Government's KiwiBuild programme.
The land is owned by Unitec but would be transferred to the Crown.
Twyford said too many Aucklanders were suffering because of the housing crisis.