Gwynedd council plans to invest £77 million over the coming six years to deliver 1,500 of affordable homes - partly funded by extra taxes on holiday homes.
The county is a hotspot for holiday home buyers - making some areas unaffordable for many local residents.
It has seen protests over the rising price of properties with the Hawl i Fyw Adra (Right to Live at Home) campaign.
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This has seen Gwynedd council take action in a move that will also boost the construction sector in the area.
The Housing Action Plan will be led by the new Housing and Property Department established by the council to address the shortage of suitable homes available to local people in Gwynedd.
It will be partly funded by income from a Council Tax Premium of 50% that is levied on second home owners.
New homes will be the first built by the council for 25 years with its previous stock transferring to housing association Cartrefi Cymunedol Gwynedd, now named Adra.
The plan includes:
- Facilitate over 500 new affordable homes including the construction of 100 of new homes to be sold or let to Gwynedd residents
- Offer loans to 250 local first-time buyers
- Deliver more than 600 new social housing for Gwynedd including buying 72 former social-housing houses to rent to local people in accordance with the council’s new local allocation policy
- Extend grant scheme to bring 250 empty houses back into use across the county
- Invest in environmentally-friendly homes
- Develop 150 living units for homeless people in the county and create 130 new units for vulnerable residents.
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Cllr Craig ab Iago, Gwynedd Council Cabinet Member for Housing said: “My top priority is to ensure that we as a council do everything we can to offer homes to the people of Gwynedd within our communities.
"We know that our young people face a greater challenge than ever to find a suitable home locally, and this is an unfair and unjust situation.
“Put simply, it is a crisis and I’m determined to see us delivering a real change. I am therefore extremely proud of this Plan, which not only shows Gwynedd Council’s vision for the future of housing in the county, but more importantly, that we have definite plans to implement that vision.
“With the help of the Council Tax Premium income that is levied on second home owners, we will start building our own houses and selling them on a shared ownership model to local residents.
“This is the kind of exciting scheme that can make a real difference in the local housing market, and I’m proud that we can offer concrete solutions like this here in Gwynedd.
"We have been ambitious, and we are looking forward to starting the work in early 2021."
The council will reinvest £22.9 million of the Council Tax Premium on second homes from now until 2026/27, along with other sources of funding including social housing grants and the funding allocated through the Council’s Asset Management Scheme.
Gwynedd Council's Cabinet will consider the Housing Action Plan report on December 15.