Shellharbour City Council commissioned a report into the current housing stock, resident's future preferences, demographic changes and supply and demand issues.

The draft Housing Strategy found the population of Shellharbour city was expected to grow by more than 24,000 people over the next 25 years and there was a need for about 10,600 dwellings in Shellharbour before 2041.

The report said that demand could be met by the existing supply in greenfield and infill residential areas.

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It also found there was a greater need for housing diversity and choice as well as more affordable and public housing.

Mayor Marianne Saliba said the state government's "one size fits all" approach to housing stock did not suit all councils and she did not believe Shellharbour needed the same density and housing styles as other Sydney councils.

"We have an obligation to our community to ensure the types of dwellings we provide meet their needs not the needs of those who may wish to develop properties in the future," she said.

"We are punching above our weight when it comes to the provision of land for dwellings and we offer a wide variety of options for people."

The report was undertaken because the council wanted to assess the appropriate provision of all forms of housing for residents before the Low Rise Medium Density Code was enforced. The code allows one or two-storey dual occupancies, manor houses and terraces to be fast tracked and approved within 20 days under a private certifier if it meets council's planning controls.

The government put the code on pause for 12 months for those councils that requested a deferral and last week extended it for another three months.

Cr Kellie Marsh said the strategy was timely given the expected population growth.

She also agreed with the report's recommendation that the city needed a range of affordable housing for a single person up to a large family.

The report said greenfield areas of Tullimbar, Shell Cove and Calderwood, which supply a range of detached, medium density and apartment dwellings, provided housing diversity and choice.

Residents are encouraged to make a submission about the strategy while it is on public exhibition for 28 days.