Evidence suggests over the next 20 years, eight in every 10 new households forming in the local government area will be home to one person or two people, the draft Port Macquarie-Hastings Council Local Housing Strategy says.

The ageing population is influencing that trend.

The trend will also be driven by families choosing to have fewer children, more couples without children and a rise in one-person households.

"The trend towards smaller households will lead to greater demand for a diversity of dwelling types and sizes in Port Macquarie-Hastings' housing mix," the draft strategy said.

Paving the way for more apartments, duplexes, granny flats, villas and terrace houses will create more diversity in the overall housing mix and will allow smaller households greater choice in the type, location, and price of dwelling they can live in, the draft strategy said.

That's compared to the 10 years to 2016 during which detached dwellings made up about 70 per cent of new housing stock.

The draft strategy sets out a framework to guide residential growth and change across the Port Macquarie-Hastings to 2041.

It shows almost 12,000 additional homes will be needed between 2016 and 2041 with the population expected to grow by 18,900 people.

The document also recognises suitable and affordable housing is a growing issue, particularly for lower income households.

Priority areas for new housing are described, along with areas where only incremental delivery of new housing will occur, and those areas where housing growth will be limited due to environmental or other constraints.

The draft housing strategy is on public exhibition until September 12. More information about how to have your say can be found on the council's online engagement portal.

Council engaged consultants City Plan Strategy and Development to prepare the draft housing strategy in partnership with demographic and mapping specialists, AlphaDemographics and emapconsulting.

The strategy details housing priorities and actions to guide sustainable housing growth, increase choice, diversity and affordable housing, deliver housing in the right locations and promote resilient and connected built environments.

The document, once approved by the Department of Planning, Industry and Environment, will serve as the long term basis for reviewing and updating planning policies, processes and controls for residential development throughout the local government area.

A detailed work program will be prepared for the implementation of housing strategy actions and timeframes after the strategy's approval.

The state government requires all councils to prepare a local housing strategy.

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