Last year, the council increased its target of building 500 new homes across North Ayrshire by 250. However, this latest increase brings the number of social homes to be built over the next five years to 1,000.
The additional 250 houses are expected to be funded through a mix of Scottish Government grants, prudential borrowing and reserves.
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The local authority has now teamed up with Arran Economic Group to develop proposals to address the island's housing issues. Currently, there are no council houses on Arran but plans are in place to build 26 new homes on the island's main town Brodick.
There are also proposals for Trust Housing Association to build a further 20 houses nearby at Springbank Farm.
Council Leader Joe Cullinane said: "We want to invest in our residents and their future, as well as playing our part in helping to reverse the decline in the availability of social housing.
"We are all aware that too many people are being priced out of the housing market so this is our commitment to our residents to do what we can to give more people the opportunity to live in a high-quality and, most importantly, affordable home."
(LM/MH)
