Watson Homes has started work on a £3.2m apartment complex in Eccles for City West Housing Trust.
The contractor will build 18 one-bed and 15 two-bed apartments in a three-storey block on Corporation Street in the centre of Eccles, with work due to complete in summer 2018.
All 33 homes in the development will be made available for affordable rent.
The project has been backed by nearly £1m in funding from the Homes & Communities Agency, and has been designed by Grays Architecture.
City West, which is part of the ForViva group, has a pipeline of 780 properties that will be delivered throughout Salford by the end of 2018, as part of its parent company’s plans to build 1,200 homes across the North West.
Overall, City West managed 14,800 homes across Salford.
Colette McKune, deputy chief executive at ForViva, said: “Developments like our scheme at Corporation Road in Eccles are vital in solving the housing crisis and breathing new life into our town centres.
“Affordable homes provide a lifeline for thousands of families on housing waiting lists, and help people to live more independent lives.”