With the Draft Local Housing Strategy Version 2 now on public exhibition, many residents are asking how it differs from previous drafts and what it means for the future of housing in Kiama.

The updated strategy reflects community feedback and aims to address feasibility concerns that have slowed the uptake of certain housing types.

It also revisits growth potential in Jamberoo and Bombo, responding to new infrastructure discussions and planning considerations.

Council has refined the housing strategy in response to community feedback, with a stronger emphasis on housing feasibility and infrastructure planning.

One of the biggest shifts is recognising that while zoning allows for mid-rise and multi-dwelling housing, market conditions often prevent these developments from happening.

Council’s Director of Planning, Ed Paterson, has highlighted that simply allowing townhouses or apartments in certain areas is not enough if the financial viability is not there.

The cost of land in Kiama, combined with high construction costs, means developers often find that smaller-scale projects do not stack up financially.

"If you buy a block in Kiama and the planning controls allow you to only build three terrace houses, the rate of return is not there for anyone," Paterson explained.

Instead, many homeowners are choosing to renovate and extend their existing homes rather than redevelop their properties for multi-dwelling use.

The updated strategy acknowledges this reality and includes actions to review zoning controls to ensure they align with what is realistically achievable.

In earlier versions of the strategy, Jamberoo was largely considered unsuitable for significant growth due to infrastructure limitations, particularly water supply and wastewater management.

However, new conversations with Sydney Water have changed this perspective.

Sydney Water has now committed to a capacity analysis of the entire network, scheduled for this financial year.

This study will help determine where additional housing could be supported without overburdening existing infrastructure.

This is a significant development because if water and wastewater infrastructure can be expanded, certain areas around Jamberoo that were previously off-limits for growth could now be reconsidered.

Bombo is another area where planning discussions are evolving. The Draft Housing Strategy estimates a capacity of 2,100 dwellings in Bombo, but this number is based on traditional lot sizes. In reality, if higher-density housing is encouraged, the number of homes could be significantly greater.

One of the key advantages of Bombo as a growth area is that it does not have the same view loss concerns as other parts of Kiama.

This makes it a strong candidate for higher-density housing such as apartments or mixed-use developments.

Council is working with the NSW Department of Planning and landholders to ensure that any proposals align with broader infrastructure plans and do not proceed in isolation.

"We do not want individual landowners rushing ahead with their own plans without considering the bigger picture," Paterson said. A coordinated structure plan will ensure proper transport links, infrastructure and public spaces are factored in before development begins.

With the Draft Local Housing Strategy Version 2 on public exhibition, residents have an opportunity to review the updates and provide feedback. Council is also working to improve access to planning information, making it easier for the community to engage earlier in the process.

Understanding the real constraints and opportunities in Kiama’s housing market is key to ensuring future developments are both achievable and aligned with community expectations.

Would you like to see more housing diversity in Kiama?

Do you think Bombo should be a high-density precinct?

Have your say while the strategy is on exhibition.

The draft Local Housing Strategy is on public exhibition from 21 February until 22 April.

You can view the Strategy and make a submission via the ‘Your Say’ portal:

You can also discuss the Strategy with Council staff at their next community pop-ups:

• Kiama Farmers Market - Wednesday 26 March (2pm to 5pm)
• Gerringong IGA - Thursday 27 March (4pm to 6pm)