The proposal for the adjoining lots on The Boulevard and Lake Albert Road would see two homes across the properties replaced with four, three bedroom homes and one, two bedroom home on an L-shaped single block.

The proposal, estimated to set developers Takajo Nominees back $1.5 million, was submitted on June 8.

It is currently being advertised to the public, a council process which alerts residents to potential developments of significance or interest and invites feedback.

One neighbour, who asked to remain anonymous, said that overall, she welcomed new housing, after seeing many old properties on the surrounding streets abandoned or left in disrepair.

She believed the dilapidated or empty properties are lowering the tone of the area and increasing anti-social behaviour, and thought new housing could be a fresh start.

Long-time resident of Kooringal Katt Heritage said the street's location, encircling a large park, made it ideal for more houses and smaller yards that could help alleviate the rental crisis gripping the city.

"We need more housing in Wagga, we're over-populated for the amount of housing we have," she said.

"Look at The Boulevarde, across the road we have [Henwood Park]. Do we need more big backyards when we have a beautiful big park right there?"

"My son doesn't even play in our backyard, he'd rather go across the road."

Wagga Council's Director of Regional Activation Michael Keys said higher-density housing with smaller backyards can be an attractive option for Wagga buyers and renters.

"Even the people coming from the city, they might not want the large yard and the maintenance that comes with that," Mr Keys said. "What they will get in [Wagga] is they're only five minutes from everywhere, and we have such beautiful public spaces they can get to quickly and take advantage of."

Wagga's housing market is currently experiencing unprecedented stock shortage and price hikes, leaving many struggling to find a home.

Earlier this month, town planning consultant Ian Graham said higher-density housing options like townhouses are a great way to increase affordability and availability in a tight market.

"A townhouse development increases density but still maintains a fairly human scale [because] you can relate to two stories better than you can relate to eight," he said.

Mr Keys warned however that multi-home developments, the The Boulevarde proposal or a Trail Street townhouse development being two examples, are not a complete solution to the housing shortage.

"I think it is part of the solution, [but] it is not the only solution," he said. "It may drive a marginal increase in the [vacancy] numbers that are occurring, but I also think there's probably going to be, with the high demand for rentals, a high demand for apartment-style living that may increase in the future."

The Boulevarde and Lake Albert Road housing development is being advertised to the public until Monday, July 5.

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