The new site will be delivered by Hanover Scotland Housing Association and CCG (Scotland). It will be known as Cuthbert Gardens and consist of 22 homes ranging from two to five bedrooms.
South Ayrshire Council and the Scottish Government are funding the development.
Local MSP John Scott visited the site and met with with senior managers from both Hanover Scotland and CCG.
John Scott MSP said: "Ayr needs more housing of all kinds as the area continues to become more and more popular.
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"In particular, my office receives regular calls from constituents looking for, in particular, ground level accommodation which is affordable, so it is hugely welcome that Hanover Scotland and CCG are able to deliver this kind of new supply to the area. I hope they will do all they can to continue to deliver this kind of housing in Ayr in the future."
Janice McDonald, enhanced housing manger for Hanover Scotland, added: "Hanover Scotland already have nine developments in South Ayrshire so to make Cuthbert Gardens our tenth when it opens next year is of great importance to us.
"This area of important to Hanover Scotland's future plans and we look forward to working with our partners such as South Ayrshire Council and the Scottish Government to deliver more high quality social housing in the area in future."
CCG director Calum Murray also voiced his delight at working on the South Ayrshire development.
Cuthbert Gardens is expected to open in the early part of 2019.
(CM/MH)
