Residents in Birchgrove say roads in the area will not be able to cope with 53 more homes.
A planning application was submitted by United Welsh Housing Association on 18 January to build affordable homes on part of the former Phoenix Estate where an Aldi store is also going up.
Some local people were already worried about traffic congestion because of the supermarket and fear the new homes could make matters worse.
Heather Ward, a community activist, said “I don’t think the increased traffic will help the road situation as I believe it is already at full capacity.”
Ms Ward said she did not think the homes had adequate parking facilities planned which might increase on-street parking around Caerphilly Road, adding to the congestion.
Jason Russell owns a garage in the area. He said: “We’ve got cars everywhere, the neighbours have got nowhere to park, they’re putting restricted parking outside the businesses. It’s a nightmare at the moment.”
“It’s just going to put more pressure on the roads than it can cope with. It can’t cope with it as it is.”
But Labour Councillor for Heath and Birchgrove, Graham Hinchey said “There is always an issue about traffic and cars.”
“It is always a difficulty but obviously we want to build homes.
He added that part of the deal would be that people would be allowed to park outside Aldi overnight.
Councillor Hinchey said he had also suggested the inclusion of a yellow box to help traffic flow from the new estate.
“There are 7,814 people on the combined [housing] waiting list in Cardiff which shows that we need to build more houses, particularly for young families,” he added.
The planning application is out for public consultation and will be heard on 15 March.