The Heath Town estate – built in the 1960s – consists mainly of high-rise tower blocks, maisonettes and houses.
The second part of the area’s ongoing transformation will see a mix of one and two-bedroom properties being built on three streets.
Work is under way in Chervil Rise, Long Ley and Tremont Street after the city council gave the go-ahead this week.
Phase one of the project involved 40 new two and four-bedroom houses on Hobgate Road and Tithe Croft.
Over the next few years, more than 300 homes will be built on the estate to go alongside major improvements to existing residential blocks already carried out by Wolverhampton Homes.
A design and access statement by Sutton Coldfield-based Walker Troup Architects, which is working with the council to deliver the regeneration plans, said: “The new properties are being built across four sites and will consist of a range of houses providing more affordable rented accommodation.
“The sites are part of the wider Heath Town masterplan, which is to deliver new build housing along with the refurbishment of existing homes, an upgrade of existing sports pitches and the development of new play areas.
“Existing low-rise maisonettes and high rise residential blocks, all of which are occupied, will remain so throughout the work.”
Overall development work also involves the demolition of redundant buildings, the clearance of land for building and improvements to existing parking areas and green spaces.
All of the new houses will have individual private gardens and a landscaped area at the front. Provisions for a total of 135 car parking spaces have also been made.
The Heath Town estate celebrated the 50th anniversary of its official opening last year and had remained largely unchanged prior to the new developments.