Leamington council approved a zoning change request on Tuesday night that will eventually allow for the construction of a large subdivision on Mersea Road 1, east of County Road 33.
The developer wants to build about 868 homes, which could bring more than 2,600 new residents to the area, on nearly 37 hectares of land.
The plan includes mixed-use buildings near the road, apartments in the middle, and single-family and semi-detached homes toward the north.
Councillor Paul Tiessen addressed density concerns.
"Times have changed. We are now looking at more density and more subdivisions to try and get more people housed, and more people housed at more affordable housing," he said.
"You can't do that on acre lots with single-dwelling homes."
Tiessen said the push for higher density housing is not unique to Leamington.
"We're seeing this across the province that there is going to be more density and going up rather than sprawling out, and it's very important to remember that," he said.
Tiessen said a similar project had previously been proposed in the area.
"The property across the road, which was now bought by Caldwell [First Nation], was slatted for residential. So this is nothing new to this area. This was always going to happen, it was just a matter of where it was going to happen. There were a lot more acres to be developed on that property than there are currently in this little zone," he said.
Town staff said the proposal fits provincial and county planning rules, and the land will be fully serviced before construction begins.
No timeline was provided.