DOZENS of Mayfield residents are furious about plans for a $1.3 million 101-lot caravan park-style development.
Private developers want to divide the old sports field between Industrial Drive and Arthur Street into 150- square-metre lots for prefabricated homes.
The development application lodged with the council says it wants to provide affordable housing options for Mayfield, targeting lower-income households and first-home buyers.
The application says it will eliminate "significant upfront costs of purchasing land", where the new residents would only need to buy the house.
The area is zoned as private recreational and manufactured-home estates are permitted to be built there.
Mayfield resident Venessa Elliot, who lives just a few houses down from the proposed development, is worried about its social impact on the neighbourhood.
She said the suburb's roads could not handle the increased traffic.
Ms Elliot said she was also worried about a lack of green space if the development went ahead.
Her preference would be for the field to be rezoned and sold off as typical suburban blocks.
Residents have until October 17 to lodge their objections with Newcastle City Council.