The Lowfield Green scheme is the first of eight sites in the council’s biggest house building programme since the 1970s.
The landscaped site in Acomb will see half allocated as council housing and the other half built for shared ownership.
Lowfield Green is part of the wider ambition of developing 550 new homes on council land across five years.
David Wingfield, business unit director of Wates Construction North East and Yorkshire, said: “Our growing portfolio in York is a testament to our reputation as a trusted and expert contractor across a diverse range of sectors and to our close network of supply chain partners in the city and the wider North Yorkshire.
“Our team has worked closely with City of York Council to scope the Lowfield Green construction programme and ensure that this important new development is delivered efficiently and to an uncompromised standard for the people of York.”
The project team includes cost and project management by Turner & Townsend, architecture, landscape architecture, structural engineering and acoustics by BDP, and civic engineering and highways engineering by Curtins.