Construction of a new road in south Kitchener will start later this year, paving the way for thousands of new homes in the area.

City councillors have approved $19.3 million in funding for the 1.3-kilometre extension of Strasburg Road.

Strasburg currently ends at Rush Meadow Street, just south of Huron Road. The extension will carry it further south to Robert Ferrie Drive.

The work will actually be paid for by a group of six development companies, who will then be reimbursed by the city at a later date.

Developers had been pushing for the project to be moved up from its proposed 2020 start date, to allow them to move forward sooner with new housing in the area.

City officials say more than 2,000 homes will be built in the Huron South neighbourhood.