The 4, 2 bedroom houses are being manufactured by ESS Modular and will be transported and lifted into position at Rowley View, Bradley.
The handover of the completed homes to City of Wolverhampton Council is expected to happen in February 2020.
One of the pioneering homes is also this week featuring in the UK Offsite Expo in Coventry, where modern methods of construction are being showcased.
The development is part of the council’s successful newbuild council housing programme on small sites.
It will also remove the issue of anti social behaviour and fly tipping effecting the site, which has been a major concern for neighbouring residents.
City of Wolverhampton Council Deputy Leader and Cabinet Member for City Assets and Housing, Councillor Peter Bilson, said: “This project is yet another example of how the council is using innovative ways to accelerate house building in the City of Wolverhampton.
“These homes are constructed to the highest standards and enable us to develop a small site with far less disruption to the surrounding area than a traditional build.
“Clearly, larger housing developments are crucial to meeting our housing targets – but the cumulative effect of smaller scale projects like this is also vital to improving our offer.
“The added bonus with this particular development is that it will also improve the area for neighbouring residents.”
Shaun Aldis, Chief Executive at Wolverhampton Homes, added: “Small scale housing developments are an important means of bringing back to life disused land and are a crucial step in meeting the housing needs of local residents.
“Once complete, this will be the second modular development we have delivered in the city, the first being the creation of 4, 2 bed homes on the Cannock Road in Fallings Park.
“We know that 2 bed homes are in high demand in the city and trust that these new modular houses will provide a long term home for smaller families.”
The scheme is monitored through a joint project team from City of Wolverhampton Council and Wolverhampton Homes, to ensure the new council homes are built to a high standard.
The homes will remain in the ownership of the city council and will be managed by Wolverhampton Homes.
