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NSW outlines 20-year plan for housing and growth in Illawara-Shoalhaven

04 Aug, 2026



The New South Wales government has released the draft Illawarra-Shoalhaven Regional Plan for public exhibition, outlining a 20-year strategy to deliver 117,000 new homes, create over 101,000 jobs, and roll out essential infrastructure across the rapidly growing region.

With the region’s population expected to expand by 161,000 people by 2046, the draft plan establishes a clear framework to coordinate long-term housing, transport, health, and education investments.

Under the draft blueprint, approximately 80 per cent of new residential development will focus on existing urban centres such as Wollongong, Shellharbour, Bowral, Kiama, and Nowra.

This plan builds on recent Transport Oriented Development precincts around Corrimal, Dapto, and North Wollongong to ensure new homes remain close to public transport, schools, and services.

For the first time, the regional framework sets council-level job targets and incorporates the Wingecarribee Local Government Area into the Illawarra Shoalhaven footprint, formally recognising its deepening economic and social ties to South West Sydney.

Key employment anchors identified to spur economic growth include Port Kembla, the Wollongong Health Precinct, Shellharbour Airport, and industrial precincts surrounding Nowra. The strategy also outlines improved transport links connecting local hubs to the emerging Western Sydney Aerotropolis.

Minister for Planning and Public Spaces Paul Scully said the initiative provides a structured economic future for the coastal district.

“Through its jobs targets, the plan is backing the region’s economic future,” Scully said.

“It drives key employment precincts while also strengthening ties to the emerging innovation and investment hub that is Western Sydney Aerotropolis.”

Minister for the Illawarra and the South Coast Ryan Park emphasised the need to align housing growth with liveability.

“As the region continues to grow, we need to make sure we deliver the infrastructure, services, and jobs to grow with it,” Park said.

The plan also supports environmental protection, First Nations land stewardship, and the establishment of Australia’s first Urban Renewable Energy Zone. Public consultation remains open until September 28.

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