Lake Macquarie is preparing for a significant population influx, with forecasts predicting an additional 38,000 residents will call the city home within the next two decades. The local council has now adopted a dual-pronged strategic plan designed to manage this growth while tackling the ongoing housing affordability crisis head-on.
Strategic Plans for a Growing City
Faced with the challenge of accommodating tens of thousands of new residents while preserving liveability, Lake Macquarie City Council has formally adopted a Local Strategic Planning Statement (LSPS) and a revised Citywide Development Contributions Plan. These documents, shaped by a major Housing Forum held in April 2025, create a roadmap for the city's future development.
The need for action is underscored by the area's popularity. Recent data from the Regional Movers Index confirms Lake Macquarie has experienced the strongest net migration growth from other Australian regions, securing its position as the nation's third most popular relocation destination.
Financial Incentives to Boost Housing Supply
A cornerstone of the new approach involves making it financially easier to build diverse housing types. The updated Contributions Plan, adopted in November 2025, introduces substantial discounts on developer levies for specific projects.
Key changes include saving approximately $6,000 on contributions for a new two-bedroom apartment, and around $5,000 for a secondary dwelling like a granny flat. These measures specifically aim to encourage infill development within existing urban areas, a priority identified at the April forum.
In a significant move to boost affordable housing stock, the council will offer a 100 per cent discount on development contributions for affordable housing projects over the next two years. This incentive is expected to save providers an average of $14,500 per dwelling, providing greater certainty for projects aimed at low-income renters.
Innovative Trials and Future Steps
Beyond financial levers, the council is piloting small-scale, innovative solutions to address housing vulnerability. In partnership with local service providers, two tiny homes will be established on underutilised council land at Belmont North to house families at risk of homelessness.
A separate trial at Belmont will see three prefabricated houses built on council land and rented at market value. While these projects are modest in scale, they represent a proactive approach that the council believes can be scaled up. An audit of all council-owned residential land is now underway to identify further opportunities for similar initiatives.
Mayor Adam Shultz, a lifelong local, acknowledges the complex housing pressures facing the city, from first-home buyers to those in insecure rental situations. He emphasises that the recently adopted plans and trials are the "next logical steps" following the crucial conversations started at the Housing Forum, but stresses that collaborative effort from all levels of government is essential for lasting solutions.
