I don't doubt that initially there will be an increase in new homes, because we currently have a housing shortage, but in the long term development will match population.
There are several natural limiters to urban growth:
1. Population - people don't start a family just for the opportunity to build a new house. In other words we just don't have the population for rampant growth. Adelaide has taken 173 years to reach our current size. Australia's birthrate is low, and so it Adelaide's population growth.
2. Travel - many people who work in the city will not want to build in deep into the country-side
3. Sellers - owners of large properties are under no contraint to sell thier property even though it may become totally legal