Kāinga Ora, a crown agency which provides affordable public housing to those in need, has announced plans to redevelop its sites in Port Chalmers later this year.
Redevelopment of four sites in Albertson Ave would see 11 dwellings demolished and replaced with 20 new homes.
A Kāinga Ora spokesman said the jump from 11 to 20 houses was a response to the urgent need for more public housing in Dunedin.
"Increasing the number of homes on existing sites means more people can live in areas close to jobs, schools and other amenities," he said.
The new homes would be mix of one, two and three-bedrooms — compared to the larger homes now on site.
"Market rent is set according to comparable rent charged for other properties of a similar type, size and location."
Demolishing of the existing properties would start in the second half of this year after consents were finalised, he said.
Kāinga Ora said it was not able to provide the total cost of redevelopments until construction had been completed.
Demand for public housing has sharply increased in Dunedin in the last five years, going from 87 on a wait list for a home in December 2017 to 381 in December 2022.