Sutherland Shire Council is proposing a target of 22,000 new homes in 20 years to meet increasing population.
The majority are expected to be villas/townhouses and dual occupancies, but 4500 additional apartments will also be needed, requiring more areas to be rezoned or limits in existing high rise zones eased.
The NSW Housing Strategy calls for another one million dwellings in Greater Sydney by 2040 and the shire is required to play its part through the South District Plan.
Targets for each council area are being negotiated with the Greater Sydney Commission and the Department of Planning and Environment.
The shire easily met its five-year target of 5200 completions from 2016, and now proposes 22,000 homes between 2016-2036 in a new soon-to-be released Housing Strategy.
Of the other council areas in South District, Canterbury Bankstown has committed to 50,000 additional dwellings by 2036, while Georges River will provide 14,000.
The 2016 census recorded 79,162 occupied private dwellings in the shire, an increase of 1375 dwellings from the 2011 census.
"In Sutherland Shire, 63 per cent of occupied dwellings were separate houses," a council staff report said.
"These proportions demonstrate Sutherland Shire's traditional low density suburban character.
"Some parts of Sutherland Shire are transitioning towards townhouses and apartments.
"Since 2016, there has been significant construction of residential flat buildings, townhouses and dual occupancies.
"This change in the proportion of housing types will be reflected in the soon to be released results of the 2021 Census.
"The speed and scale of change is generally less for Sutherland Shire than the rest of Greater Sydney."
The report said, despite the completion of new dwellings, there was still unmet demand for housing in the shire.
"This is indicated through rental vacancy rates which measure the proportion of residential properties vacant and available for rent at any one time," the report said.
"A rental vacancy rate of 3 per cent indicates a balance between supply and demand.
"The rental vacancy rate in Sutherland Shire is typically between 1-2 per cent, indicating demand exceeds supply."
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