Hull Council leader Carl Minns joined Beal Homes’ managing director Richard Beal at the start of work on 103 new homes on the 7.5 acre Westwood site, which is on the north-western edge of Kingswood.
The development will create around 20 new jobs, with around 30 construction workers needed on site an any time.
Two apprentices will be learning plumbing and bricklaying skills there.
So far 10 homes have already sold months to buyers, months ahead of their completion.
The new homes are mainly three and four bedroom detached and semi-detached homes.
Mr Beal said: “We are moving away from three-storey townhouses and back to what people really want, which is traditional two-storey houses.
Planning policies have been relaxed and nationally there is a return to more traditional homes.”
Mr Beal said sales in the first quarter of this year would be at least double in the same period last year, nine last year compared to 21 so far this year.
“It suggests the mortgage market is easing and more people are in a position to buy,” he said.
“There are more products out there than people realise.”
Coun Minns said: “It is great to see a local company like Beal Homes spearheading this development in what is an up and coming area of the city.
“We welcome their pledge to support other local contractors and to employ local people, which can only help to boost the local economy.”