Auckland Council is getting a $339 million government loan to enable 7000 houses to be built in the north-west of the city.
The interest free 10-year loan will go towards major infrastructure projects in Redhills and Whenuapai.
Auckland mayor Phil Goff said it will deliver new roads, wasterwater infrastructure, bus and cycle lanes.
This will allow developers to quickly build housing on greenfields land.
Housing Minister Phil Twyford said the developments would be near the planned light rail line and be supported by growth at the Westgate commercial centre, providing local services and employment opportunities.
He said the investment promoted one of the city's more affordable areas.
QV estimates properties in west Auckland average $824,000 compared to over $1m city-wide, he said.