Located on Shann Lane close to Keighley town centre, the 124 new properties will comprise a mix of three and four-bedroom homes and feature seven of Avant Homes' house types.
Named Odette's Point, the development received planning permission in January this year. The overall build programme is estimated to take approximately three years.
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Avant Homes has also committed to a community contribution of £300,000 towards local affordable housing and education.
The showhome is due to open this autumn with the first homes set to be ready for occupation this November.
Avant Homes regional chairman, Scott Varley, said: "We know there is a strong demand for high quality, new build homes in Keighley, so we are very pleased to start work at Odette's Point.
"Having also recently started work at our 53-home Croftside Quarter development in Cullingworth, we are committed to providing these much-needed homes within the Bradford district."
