Lismore's mayor says high-rise buildings could be the solution to a housing crisis in the flood-prone region of New South Wales.

Over 1,000 people are stuck in emergency accommodation after recent natural disasters in the Northern Rivers region, and many more are still staying with family or friends.

The state’s independent flood inquiry has recommended urgently moving people out of high-risk areas on flood plains.

Lismore Mayor Steve Krieg says high-rise residential developments would be one way to ease the pressure.

“You know for Lismore, you can't necessarily build out,” he said this week.

“We all know what happens when you build out. We're on a flood plain and it goes under water in floods. 

“We're not looking at 50 storeys, but I think you can comfortably build eight to 10-storey apartment blocks with your first two or three floors as storage and car parking.

“So if we do get a flood, you're above that 15 to 16-metre flood height,” he said. 

The neighbouring Byron Shire mayor Michael Lyon says high-rise residential buildings have “some merit”, but Byron locals have rushed to voice their opposition to the idea. 

“I think it makes sense to cite that classic thing where you either go up, or in, or out,” Cr Lyon said.

“Given the situation we're in ... and the lack of availability of land, I think it seems like a relatively sensible idea. 

“I definitely feel it's worthy of further discussion.”

The independent flood inquiry report also called for the development of more villages to be fast-tracked, potentially on agricultural land cleared for residential development.

Cr Lyon says he supports an eco-village model of smaller lot sizes and a diversity of housing types.