Teignbridge District Council (TDC) estimates 14,800 new properties need to be built over 20 years to cope with the growth in population.
But protesters, who signed a petition, said figures had been over-estimated and would create a "concrete jungle".
The petition was handed to the council as part of a public consultation, which ended earlier.
Peter Large, a campaigner from Dawlish, said: "Tourism is one of the most important industries and what we don't want to see is Dawlish become just another satellite for Exeter."