Rezoning approval for Village Building Company's controversial project was announced yesterday, securing hundreds of jobs for local workers to build 2000 homes south of Queanbeyan.

Despite the decade of fierce debate surrounding the development, Master Builders ACT deputy executive director Jerry Howard said the politics of the project did not matter to workers.

''Master Builders supports any initiative that creates job security for the construction industry,'' he said. ''These developments can't come too soon for us.''

The construction industry has been struggling over the past year. It has recorded drops as large as 81 per cent in building approvals for detached, semi-attached and multi-storeyed dwellings.

Mr Howard said about 3000 workers had lost their jobs over the past year, which was a blow to the Canberra economy as unemployed workers left the capital.

''They just disperse to other parts of the country,'' he said.

Housing Industry Association ACT and Southern NSW executive director Neil Evans said the development would be a boost for the local industry on both sides of the border.

''It's going to mean more work, more jobs and more activity - not just for NSW builders but also ACT builders who want to work across the border,'' he said.

Mr Evans said there would be more construction locally if there was a big proportion of affordable products coming onto the market.

''Tralee looks like it's going to deliver that,'' he said. ''This is something that is going to target a market that hasn't been adequately dealt with yet. If there are more clients, more demand from that first home owner market, it's going to keep our guys in the industry ticking on quite well.''

Village Building Company chief executive Bob Winnel said there would be several hundred construction workers on site at any given time once work began.

''It's also all the little factories throughout Queanbeyan that will be doing the joinery, doing the kitchens, selling the tiles,'' he said. ''There are a million different little businesses that will have additional staff.''

Despite the housing numbers being slashed to fewer than half the original figure of 4800, Mr Winnel said the development would facilitate a more competitive housing market that would target first-home buyers and young families.

The majority of the homes would be available for less than $400,000, and all would be insulated against aircraft noise to meet the stipulations of the NSW government.

Mr Winnel said the details of the insulation had not been finalised but that this would result in work worth thousands of dollars to walls and windows.

''The insulation will add about $10,000 per home and that simply comes off the land value,'' he said. ''It won't affect the affordability in any way whatsoever.''

While the project is expected to take up to seven years to complete, depending on market conditions, Mr Winnel said initial construction could begin as early as November 2013.

''From that point, there will be houses occupied within about eight months of that date,'' he said.