Wellington mayor Justin Lester has announced the city will gain at least 750 new social and affordable homes over the next decade.
The units will be developed as part of Wellington's housing upgrade programme.
"This is a major development in how our city handles housing," Lester said.
"We know we need a new approach to social and affordable housing so that we don't end up like Auckland.
"Next week, I'll be asking my councillors to agree to a new programme which will see us utilise council land better and develop quality new homes as fast as we can.
"Some will be social housing, others will be affordable homes aimed at first-home buyers. Half will be replacing outdated stock and half will be brand new on top of what we already provide. This will mean a net increase in our social housing units."
Lester said the housing would be "good quality homes" in mixed developments.
"We aren't just going to sit on the sidelines and leave social and affordable housing to the market. We're going to roll up our sleeves, work with developers, and get the job done," he said.