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Pat McFadden, MP for Wolverhampton South East, joined Councillor Peter Bilson, Wolverhampton City Council's Cabinet Member for Economic Regeneration and Prosperity to see how the Thompson Avenue development was taking shape.
The scheme will see the creation of 120 new houses - 40 of which will be council homes, representing the first to be built in the city since the 1980s.
Last year, Wolverhampton City Council approved the plans by Kier Partnership Homes to redevelop the site.
And the first of these council homes is due to be completed in September.
Councillor Peter Bilson said: "It is extremely exciting to see this hugely important scheme take shape.
"One of our key aims to regenerate the city is to increase the number of decent and affordable homes that are available in Wolverhampton and this scheme certainly helps us achieve that.
"We are now looking forward to seeing these properties completed and occupied later this year."
Pat McFadden, MP for Wolverhampton South East, said: "There is a need for more affordable good quality housing in Wolverhampton.
"This excellent new development is the first new council housing to be built in Wolverhampton for many years and will be one step towards addressing the shortage we face."
Chris King, Managing Director of Kier Partnership Homes, said: "We are delighted and proud to be working alongside Wolverhampton City Council to provide the first new council homes in 30 years.
"We understand that affordable housing needs and a sustainable design both play an important role in this development."
The overall development will see a mixture of properties across the 7 acre site, ranging from bungalows to 4 bedroom properties.
It is anticipated that all 40 council properties will be completed by spring 2015 with the whole scheme completed in 2017.
- released: Wednesday 16 July, 2014