Police are hunting a gunman after a man was shot dead outside a Wollongong home in what is believed to be a targeted shooting.

Nathan Costello, who was believed to be in his 30s and known to police, was found with a gunshot wound on a nature strip outside a Unanderra home at 2.15am on Wednesday.

He died at the scene.

A manhunt for the culprit continued overnight as police tried to establish a motive for the targeted attack.

A blue vehicle with two bullet holes found outside the Carr Parade house was also forming part of police investigations.

The type of firearm used by the attacker has not been determined, but investigators believe the shooting happened from the street.

A strike force is investigating the death.