The EASEL (East and South East Leeds) project, which is slated to take around 20 years to complete, will bring over£1.2bn of private investment and around£100m of public investment to the area.
It comes after the council entered a long-term partnership deal with developer Bellway to create a joint venture company.
Decisions on planning applications for more than 840 new homes on eight initial sites in Gipton and Seacroft are expected before the end of May.
Prices are expected to start at£110,000 for a two-bedroom apartment, with three to four-bedroom homes from£130,000 less than existing housing.
The council’s executive member for neighbourhoods and housing, Les Carter (Con), said: “EASEL will bring truly transformational change to East Leeds.”