The council has put forward proposals to the Scottish Government to develop up to 650 more houses as part of the Argyll and Bute Strategic Housing Investment Plan (SHIP).
To date, 554 'affordable' homes have already been developed in the region over the last five years, exceeding the original Local Housing Strategy target of 550 units by 2016.
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Cllr Robin Currie said creating further housing will help with employment, in particular jobs in the construction sector.
"It will create a more effective operation of the local housing system; contribute to improving general health and wellbeing; and stimulate community regeneration and sustainability," he said.
"This is a very exciting time for housing in Argyll and Bute. With 554 new affordable homes having already been created, and plans for up to another 650, this will go a long way to addressing the housing shortage."
The new SHIP was approved by the Council last month and will now go forward to the Scottish Government for consideration.
(LM)
