Dundee did not build a single council house last year despite more than 7000 people waiting for a home.
Statistics released by the Scottish Government show the local authority did not start or finish a single home in the last financial year, and has built only 81 in the last 19 years.
The council has only built an average of four homes a year since 1996 one of the lowest figures in Scotland although this number has been bolstered by housing association building.
Labour leader Kevin Keenan has demanded action be taken to help alleviate the lack of supply in the market.
He said: “The Scottish Government must provide more money to build the homes people need.
“In previous years more homes were built because there was more money available but the Scottish Government has slashed that.
“It is a hugely important issue because getting a mortgage these days is so difficult for people. They need somewhere to live.”
In June, there were a total of 7,222 people waiting for either a council or housing association property in Dundee, although in the same month in 2013 there were 7,744 waiting for a home.
Mr Keenan added that he was disappointed to see projects to build affordable housing in Dundee had been scrapped or delayed in recent years.
The local authority has also not started building any homes in Dundee in the last three years.
The majority of house building by the council was finished in the financial year 2011-12 when 57 homes were completed.
SNP deputy housing convener Kevin Cordell rejected any criticism, pointing to work with housing associations in particular.
He said: “Both the council and the housing associations in Dundee continue to build affordable rented housing under the affordable housing supply programme to meet housing needs within the city.”
A Scottish Government spokesperson said: “Scotland suffered from having too few affordable social rent houses built pre-2007, this is why we are working hard to tackle the shortfall of affordable housing in communities across Scotland despite severe cuts to our capital budget.
“We’re helping councils with funding to encourage them to build new housing for the first time in 30 years.”