Meanwhile, preserving the unique village atmospheres of Gerringong and Jamberoo has been identified as a priority – at least for the time being. 

The Illawarra Shoalhaven Regional Plan, released on Tuesday, is the government’s 20-year plan for the region.

It outlines five main goals, one of which deals with housing.

The new regional strategic document was unveiled in Gerringong by Planning Minister Rob Stokes and Parliamentary Secretary for the Illawarra/Member for Kiama Gareth Ward.

“The region will need at least 35,400 new homes between 2016 and 2036 to meet the demands of population growth and change,” the report states.

“This is an average of 1770 each year.”

Part of this target will be reached by “increased housing activities” in established suburban areas.

It suggests villas and townhouses in the corridor from Corrimal to Thirroul and apartments in metro Wollongong and Kiama.

“An analysis of current planning controls in the region shows capacity for 24,100 new homes in existing urban areas,” the report states.

Kiama is believed to have room for 2850 new homes.

Speaking to the Kiama Independent on Friday, Kiama Mayor Brian Petschler said he was yet to see the full document, but said his initial impressions were positive.

Previously, according to the Draft Illawarra Regional Growth Plan for 2031, over the next 15 years the Illawarra is to welcome 65,000 residents into the Wollongong, Shellharbour, Kiama and Shoalhaven LGAs. 

Kiama alone was said to be expected to absorb 3600 new homes. 

Cr Petschler was pleased that this number appeared to have been reduced.

“That’s a more reasonable figure,” he said.

“I still have concerns with 2850; that number is a bit high.

“On first glance our figures were less than that, but the department is taking a much more co-operative approach to this, and we’ll work with them.”

Cr Petschler said overall it appeared to be good report in terms of the municipality, and was hopeful they could work with the department on growth, while keeping the area’s amenity intact. 

Following the plan’s release, Mr Ward was also proclaiming positive news for Gerringong and surrounding areas. 

Last year, Kiama councillors unanimously endorsed a submission in response to the state government's Draft Illawarra Regional Growth and Infrastructure Plan, reaffirming the council’s view a southern boundary of Gerringong had been set.

The release of the draft plan reignited concerns the southern boundary of Gerringong could be further expanded into farmland.

The plan said the Department of Planning intended to work with Kiama council to identify “an appropriate boundary for the southern expansion of Gerringong, noting the importance of maintaining Gerringong and Gerroa as separate urban areas”.

Mr Ward said he managed to have the proposal to build homes between Gerringong and Gerroa removed from the latest plans.

He said this meant the government wasn't identifying southern Gerringong as an area for growth. 

“We are not supporting growth outside of the existing envelope for the Gerringong township,” Mr Ward said.

“Jamberoo has also been preserved… As far as Jamberoo is concerned, we’re protecting its village atmosphere too within the Kiama Urban Strategy. 

“We have reasonable growth targets, but are aiming to preserve the things people love about our town, in particular the village atmosphere.

“People will ask, ‘how can we guarantee this for the longer term?’

“I can only guarantee it as long as I’m local member.”

Other key points from the plan - 

*It also highlights the importance of the region’s environmental land, such as Seven Mile Beach.

In the report, the government claims it will retain the area zoned E2 Environmental Conservation under the Kiama Local Environmental Plan, which prohibits further sand mining.

*According to the report, “growth will be moderate in most age groups, except in the 65-and-over group, particularly in Kiama and Shoalhaven”. 

*The plan indicates that as the Bombo Quarry nears the end of its extractive life, there will be an opportunity to secure more land for residential, commercial and/or industrial purposes in the future as part of a master plan covering a range of uses for the area.

*According to the plan, in Kiama the need for an additional greenfield land release to accommodate growth will have to be determined.

The plan indicates that while Kiama should be able to accommodate 2850 new homes, analysis indicates that there is not enough land or ‘market ready’ infill development in the planning pipeline to meet this demand.

“This may constrain the mix of housing available to first-home buyers, young families and retirees, and to people who want to age in their homes,” the plan said.

Therefore, the state government has resolved to work with Kiama council to monitor and review the potential of the area to accommodate housing demand.

*The report also flags tourism-related public transport improvements in Kiama and the Shoalhaven.

*A new body will be established to drive the plan’s implementation. The new body will be jointly chaired by a representative of the Illawarra Joint Pilot Organisation and the Department of Planning and Environment.