The Uncomfortable Solution to a Deepening Crisis
Lake Macquarie City Council has unanimously endorsed a controversial 20-year vision to address a severe housing affordability crisis, with one councillor openly acknowledging that the necessary shift towards higher-density living may prove "uncomfortable for people".
Labor councillor Keara Conroy defended the strategy as vital, pointing to damning new figures that reveal the city's housing affordability has plummeted by a staggering 34 per cent in less than a decade. The council's Local Strategic Planning Statement (LSPS) 2025-2045, approved on Monday night, paints a stark picture of a rapidly closing window for home ownership and rental security.
By the Numbers: A Market in Distress
The data within the planning document reveals a dramatic collapse in affordable options. In 2015, the region saw 1223 affordable dwellings sold, making up a healthy 36 per cent of all residential sales. By 2023, that number had catastrophically fallen to just 65 affordable sales, a mere two per cent of the market.
The rental situation is equally dire. Affordable rentals dropped from 24 per cent of the market in 2015 to 19.4 per cent in 2023. Current median prices underscore the problem, with homes in western Lake Macquarie fetching around $923,728 and units selling for a median of $667,725.
"If we know where housing prices are, they've probably only gotten worse [since 2023]," Cr Conroy stated, emphasising the urgency of the council's new approach.
A Blueprint for a Denser Future
The LSPS identifies specific urban centres to shoulder the burden of future growth. Charlestown and Glendale are classified as "strategic centres" deemed suitable for medium- to high-density housing, including residential towers above seven storeys, with a density target of 75 dwellings per hectare.
Other key areas include:
- Strategic Centres: Morisset and Belmont
- Emerging Strategic Centre: Cockle Creek
- Local Centres for medium-density: Boolaroo, Cameron Park, Cardiff, Warners Bay, Swansea, Toronto, and several others, targeting 50 dwellings per hectare.
This planning push comes as community opposition to specific developments grows. Residents in Argenton have recently formed a committee to fight a proposal by Iris Capital to build 300 apartments above the Argenton Hotel, a project that would dedicate only three to five per cent of its units to affordable housing.
While not commenting directly on that development, Cr Conroy made her position clear: "Not in every case, but in many cases, I will be found to be supporting the higher-density developments." She argues this is essential not just for affordability but for an ageing population wishing to downsize and stay within their communities.
Independent West Ward councillor Kate Warner also backed the 20-year vision but highlighted a critical caveat. She stressed that infrastructure must keep pace with the planned population growth, which is forecast to see Lake Macquarie's population swell from 222,000 in 2024 to 260,000 by 2046.
"We need to continue to keep balance of the needs and wants in our community," Cr Warner said, pointing to liveability and connectability as issues the community has "heard loud and clear."
