The temporary homes will sit on the site for between one and four years and can then be moved to a different location.
Architects Rogers Stirk Harbour + Partners have designed the 24-homes scheme on the site of the former Ladywell Leisure Centre building.
A planning application for the scheme will be submitted this month with construction due to be completed by the end of the year.
The council said: “The proposed method of construction means that the development can be built faster and cheaper than if traditional methods were used, and as the finished structure is fully demountable it could be re-used over a number of years and in different locations across the borough.”