Port Stephens is forecast to grow by almost 20,000 people over the next 20 years and to accommodate the growth, more than 11,000 new dwellings need to build.
To prepare for the population boom, Port Stephens Council has created a draft local housing strategy to map out its vision for future housing.
The Tomaree Peninsula, Raymond Terrace and Medowie are expected to do most of the heavy lifting, with each anticipated to grow by more than 5000 people and at least 2000 homes.
To meet the demand, Port Stephens needs 550 new dwellings a year, but current housing supply will "fall significantly below" the demand, with a shortfall of more than 4000 homes expected in 20 years.
The report says the region needs a mix of townhouses, apartments and shop-top units around rejuvenated town centres, greenfield developments and infilling housing within walking distance to existing centres.
"As the land that is suitable for greenfield development is taken up, the amount of infill housing would need to increase to meet the forecast demand for housing," the report states.
Greater diversity in housing should be a priority, with only 4 per cent of the region's housing stock are apartments.
"There are more freestanding houses with five-bedrooms than the entire apartment stock across Port Stephens," the report stated.
There is also a desperate need for more affordable housing.
"At the time of writing, there are only 36 affordable housing dwellings/units in the Port Stephens LGA," the report states.
Deputy Mayor Leah Anderson said the council was "very aware" that to accommodate extra residents, the region needed extra infrastructure, including roads, health services, schools and public spaces.
"This document will not only help council plan for this change but also, seek funding from both state and federal governments to deliver what's needed," she said.
The report will on exhibition for public feedback.
Tomaree Peninsula
The report says the Nelsons Bay town centre should be the focus of high-density housing, with up to 950 new dwellings - more than 700 of which would be in three-to-six storey mid-rise buildings - housing an additional 1700 people.
The Nelson Bay east precinct was identified as an area of mid-density potential. Sitting north of the Nelson Bay Golf Course and Fly Point, Little Beach and the Tomaree Community Hospital, the precinct could be home to an extra 1720 people in 960 houses, which would mostly be in three-to-six storey buildings.
Shoal Bay could accommodate another 1000 people who would mostly be housed across 475 mid-density units.
Salamander Bay could see an extra 250 people living around the shopping centre precinct in mid-rise buildings. Salamander Way is the only greenfield opportunity on the Peninsula, and if rezoned could be home to 215 people and 120 homes.
Although collectively the Tomaree Peninsula is the largest population centre in the local government area, 28 per cent of all its dwellings are unoccupied and used as short-term rental accommodation or holiday homes.
Raymond Terrace
The report identified Raymond Terrace as a major growth area, which could be home to an extra 5400 people, taking its total population to 20,000.
Under the plan, the Raymond Terrace CBD would be transformed to accommodate almost 2000 people across more than 950 dwellings, including 720 units in three-to-six storey buildings and around 50 apartments in a seven-storey building.
"In the future, the character of the precinct would evolve into an urban centre supported by a range of low, mid and high-rise development," the report stated.
"The opportunity for mixed use development would introduce more people to the precinct, creating a more vibrant and active urban centre."
The massive Kings Hill development will contribute 700 houses for 1425 people.
Small-to-mid sized housing developments will contribute about 840 houses for 1800 people, including The Royal Precinct, Mount Hall Road, Richardson Road, Muree Precinct, Yarramindi Precinct.
The report notes the current supply of housing within Raymond Terrace low, as the existing greenfield opportunities have been exhausted and there is a lack of infill development.
"The forecast data for Raymond Terrace indicates that, without intervention, the likely demand would be low over the next 20 years," the report stated.
"Council is working on a program to stimulate investment and increase supply in the CBD and surrounding residential precincts.
"Through investment in public open space, driving increased economic development and partnering with government agencies, council would work to stimulate the housing sector."
Central Growth Area
The Central Growth Area includes both Medowie and Karuah, and has historically been one of the fastest growing areas in the Hunter Valley.
In 20 years, it could be home to an additional 5800 people. The majority will be located around Medowie, which has accounted for 20 per cent of all new housing in the LGA in the past five years.
"The Medowie precinct has been shaped over the past 8 years through the implementation of the Medowie Planning Strategy and more recently the Medowie Place Plan," the report said.
"The benefit of this planned approach can be seen in the current growth."
The potential Timber Mill development could double the population of Karuah, with more than 1400 people and nearly 600 homes.
Although the Central Growth Area could host another 2340 homes, most of the potential housing precincts require rezoning first.
Anna Bay
Development around Anna Bay has been restricted by significant flooding and ecological constrictions, which has in large part stopped growth in the area.
"The available studies have highlighted some potential on the edges of the existing urban precinct, however this is limited," the report stated.
Another 900 people could be accommodate in the region, more than 550 of which would be around the Anna Bay town centre.
"The opportunity for mixed use development would introduce more people to the precinct, creating a more vibrant and active urban centre," the report stated.
Fern Bay - Fullerton Cove
The growing suburbs of Fern Bay and Fullerton Cove could increase by another 1240 houses over the next 20 years, housing an extra 2500 people.
The expansion of Fullerton Cove would account for two-thirds of the growth (1570 people and 840 people).
The remaining homes would be split between the Defence Housing Associations' $210-million beach-side development at the old rifle range, and the $108-million seniors village planned for the 16th, 17th and 18th holes of the Newcastle Golf Course.
Tilligerry peninsula
The Tilligerry Peninsula has had only limited growth over the past several years, but the report identified two major infill opportunities around Tanilba Bay.
Part of the Tanilba Bay Golf Course could potentially be developed to host 210 houses and 400 people.
"The precinct would be subject to further discussions with key landowners and the community regarding the potential of this area," the report stated.
"Should the precinct progress, it would be envisaged that development would be in the form of detached and low-rise housing consistent with the desire to include more compact urban housing in new release areas.
The nearby Tanilba Bay centre could "evolve into an urban centre supported by a range of low and mid-rise housing", becoming home to almost 800 people.
