Wagga builder Wayne Carter, of Wayne Carter homes, said fellow builders were growing restless over the pace of building approvals.

“They are certainly better than what they were three or four years ago,” Mr Carter said, who sits on the Wagga committee of the Housing Industry Association (HIA).

“But they are still not where we would like them to be.”

The latest HIA state outlook reveals there were 118 new Wagga buildings approved in the March quarter – an increase of 6 per cent on the year before, but still one of the lowest in the state. The Riverina was in the bottom four NSW regions for building approvals, with a 4 per cent contraction on the year before. Mr Carter said despite low interest rates and first home buyers grants, it was becoming “increasingly difficult” for prospective homeowners to build their own home.

“They are finding they are really having to stretch themselves to get into the market,” he said.

“It’s because the state government is trying to wrap the industry in cotton wool, and the builder has to pass that on.

“There’s a difference between scratching yourself and tearing the skin off. It all adds up.”

A standout figure in the HIA report is what appears to be an explosion in the number of unit approvals, increasing by more than 92 per cent on the year before. It’s the latest set of data to confirm a trend towards higher density housing in the city, following reports in which planners said there was an undercurrent of “cosmopolitan” living similar to Sydney and Melbourne markets taking place.

Mr Carter said more first home buyers were taking advantage of high density living.

“The best way to get your foot in the door is to scale down on the block and get in a villa because it’s not as expensive,” he said.

“It’s young people that are buying them, but it’s also those that are downsizing.”

Another builder, Matt Jenkins, on Thursday said the “majority” of the Wagga community was in favour of high density development and spruiked its role in limiting urban sprawl.

Mr Jenkins said it also limits the number of cars on the road as it cuts down on commute times to the city from outlying suburbs. But city councillor Kevin Poynter urged restraint against rubber-stamping every new high density development. He also said he didn’t want to see a loss of community as a result of compact development.

Wagga mayor Rod Kendall said council no longer wanted low density housing in certain parts of the city.

“There’s been a general reduction in lot sizes in Wagga over the last 30 years,” he said.

He said council had recently knocked back a Central development application because it wasn’t dense enough.