Affordable housing developer Mulbury Homes has started work on a £11.6m development in Picton Road, Wavertree.
The scheme is on a derelict five-acre site, and will provide 108 homes, with a mix of 36 one-bedroom apartments in three separate blocks, 40 two-bedroom houses and 32 three-bedroom houses for affordable rent.
The site was formerly a Royal Mail delivery depot and was later used as an indoor go-karting track.
Demolition is currently underway and Manchester-based Harbur Construction will begin work on the homes later in the summer.
The scheme is scheduled for completion in early 2016.
Greg Mulligan, director of Mulbury Homes, said: "We have worked closely with Riverside and Liverpool City Council to design an inspiring scheme that will provide modern, energy-efficient homes, but which will also fit well with the surrounding Victorian housing.
"This is a large development that will increase the supply of affordable homes in Wavertree and also regenerate a key gateway between Wavertree and Liverpool."