The popular furniture outlet Ikea is to start selling "flat-pack" houses from £70,000 each.
The timber homes - the first of the sort in this country - have "high ceilings, double glazing, wooden floors and fitted kitchens and bathrooms".
An estate with 117 of the open -plan flats will be created close by to Gateshead's International Stadium.
Council member David Napier is quoted as saying in the Mirror newspaper: "These homes are cleverly designed, highly energy-efficient and they look fantastic."
Those set on buying must be earning £15,000 to £30,000.
The properties are named BoKlok - Swedish for "live smart" and will be assembled by a construction company.
They are available to purchase from today at Gateshead's Ikea. Other plans are already in the works for Brighton, Edinburgh and the New Forest.