CONSTRUCTION has begun on Gladstone's first lot of dedicated affordable housing developments for teachers, nurses and retail workers.
Gladstone Affordable Housing began construction last week at both its sites at Glenlyon and Fisher Sts, with initial works including demolishing existing buildings, clearing and excavation.
The $20 million investment by Gladstone Affordable Housing also represents a much-needed boost for the city's construction industry and local sub-contractors.
Both of the properties, which are strategically located in or adjacent to the CBD, will be developed simultaneously by Badge Constructions.
The initial 12 units at Glenlyon St are expected to take nine months, with the first units likely to be available to tenants in early 2015, while the 32 Fisher St units and villas should take about 12 months to complete.
GAH general manager Rebecca Oelkers said while the availability of "market" rentals had increased in recent months, there continued to be an undersupply of quality, affordable housing in the Gladstone area.
"While Gladstone rental prices have eased overall, they are still not affordable for GAH's target group…such as teachers, nurses, hospitality, retail and childcare personnel," Ms Oelkers said.