An exodus from cities to regions spurred by COVID-19 brought 3,297 new residents including 215 from overseas into Dubbo.
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The huge number has lead to Dubbo Regional Council fast-tracking the opening of 110 lots it owned in Keswick.
There have also been 148 private single dwellings and other types of housing approved in the local government area.
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Mayor Mathew Dickerson said council has "brought forward planning as quickly as possible to address [housing needs]" in collaboration with developers who have land already zoned for housing but have not progressed into construction.
Fifty council-owned lots in Keswick will be opened in June and another 60 released next February to ease the housing shortage.
"This will help the [housing] situation and encourage developers that its a great time for building houses," Cr Dickerson said.
At least 70,900 flocked to regions across Australia in 2020-2021 mostly interstate migrants due to the pandemic, the latest Australian Bureau of Statistics report said.
Tree-changers chose it of all other places for the idyllic lifestyle and job opportunities, Cr Dickerson, who also chairs Regional Cities NSW, said.
"We picked up our fair share as people are realising regional areas like ours are better places to live. Adding three thousand more over two years is something we can absorb.
"We have the state government to help us ensure we have enough places in our schools for children and police having enough [staff] to handle the policing needs."
The Chowdhury and Sharma families are so-called treechangers from Sydney who never looked back.
"We moved because of employment opportunities and life is very easy being a 10-minute commute city," said local councillor Shibli Chowdhury.