The need for a Housing Supply Reference Group is one of the ideas that was developed from council's housing availability forum last week.

The forum gathered stakeholders from the region to discuss their hosing concerns, and provide possible council-led solutions.

Data from the Real Estate Institute shows the rental vacancies for Orana in April were at 1.3 per cent. In comparison, April 2020 had a rental vacancy rate of 2.7 per cent.

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But, there were a range of ideas bought forward at the forum, including looking at options for worker accommodation in both Dubbo and Wellington and reducing minimum lot sizes.

Changes to developer contributions were also raised.

Possible ideas included reviewing developer contributions in the CBD to improve the viability of low to medium-rise apartment buildings, as well as deferring the payment of contributions for multi-unit dwellings.

The reference group is designed to keep the ideas flowing.

Mayor Stephen Lawrence said it would provide information and insight to council, which would help shape the Residential Areas Development Strategy and future housing policies.

It will be comprised of industry representatives.

"We as a community need to grapple with the housing challenge and council is well-placed to play a leadership role," he said.

The mayor has also called for a review of a policy that restricts the number of days residential properties can be made available for short term rental like Airbnb.

The NSW Department of Planning Environment and Industry has introduced a 180-day cap for short term rentals that will come into effect on July 30.

"Due to timing issues the matter was not brought to council for determination. The staff decision has caused some disquiet among property owners involved in that market. It is appropriate therefore that the matter come to council," Cr Lawrence said.

He has called for council to put together a report on the rationale behind the policy being adopted for the June council meeting, and whether the decision can be reversed.

Council is also investigating if there is a role for the organisation to play in property development.