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Kier is developing 78 units comprising 1, 2, 3 and 4 bedroom properties located on the west side of Dudley Street, either side of the entrance to Carder Crescent.
It is part of City of Wolverhampton Council's push to deliver up to 450 homes on Bilston Urban Village, which sits south of the town centre and Black Country Route.
Chris King, Managing Director of Kier Living Central, said: "We are making good progress at Bilston Urban Village and this is another important milestone in the project.
"Together with the council we are delighted to be pioneering the way on this site to create a high quality residential destination in the area that will deliver a real positive, long term impact to the region."
Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Housing and Assets, said: "The first bricks are being laid and we will soon see the first houses spring up as the Bilston Urban Village vision becomes a reality.
"Our plans to develop 450 homes on this site will make a significant impact in achieving our housing targets in Wolverhampton.
"Everything a developer would want is available on site ready for them to come and build houses.
"The council has spent a lot of time making sure there is good road access, and ensuring that, with a bus only link, cycle ways and pedestrian routes, the new housing will be well connected to the town centre.
"The urban village will be a key part of the wider regeneration of the city, bringing new homes, new jobs and more investment. It demonstrates our commitment to Bilston and ensures it will continue to be a thriving area."
The Bilston Urban Village advanced works programme to remediate a further 27 acres of brownfield land for residential use was completed in June and the council hopes to announce early next year who will develop the remaining plots.
The advanced works programme was undertaken by the council, with additional funding from the Homes and Communities Agency and Local Enterprise Partnership.
It saw trees cleared, former factory floors broken up and the old railway embankment removed as the site was levelled.
The developed brownfield land will also include extensive areas of open space, footpaths and a water feature.
The first phase of Bilston Urban Village produced significant investment in the building of the Bert Williams Leisure Centre and South Wolverhampton and Bilston Academy - improving health and increasing opportunities. A commercial development plot fronting the Black Country Route and the direct pedestrian linkage of the site with the town centre was also created.
- released: Friday 16 September, 2016