Cheers have mixed with shouted expletives in a town hall as a plan to usher in thousands of new homes reached its final airing.

Even the prime minister had caught wind of the fierce debate raging in Ashfield, in Sydney's inner west, over a controversial plan to dramatically scale up housing and increase density in areas characterised by century-old neighbourhoods.

The dispute over the council's plan for up to 30,000 new homes in the once rough-and-ready, now-gentrified area provides a microcosm of battles playing out in Australian cities as ambitious housing targets collide with local opposition.

New apartment blocks up to 10 storeys high along an upgraded metro line in the enclaves of Marrickville and Dulwich Hill will bring down housing costs and stem the exodus of young people priced

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