To understand the potential impact of Build-to-Rent (BTR), it’s worth looking at how the sector has evolved around the world.
United Kingdom: A Model for Growth
The UK has been a leader in BTR expansion, especially after a 2012 government initiative aimed at increasing rental housing supply. Today, the country boasts around 115,000 BTR units, with further growth on the horizon.
According to Richard Valentine-Selsey from Savills, BTR developments offer longer and more stable lease terms, often up to three years—far exceeding the standard 12-month contracts in the private rental market.
“It gives tenants consistency to plan ahead while enjoying high-quality amenities and a professional rental experience,” he explains.
BTR apartments are also being built faster than traditional units for sale, in part because institutional investors—such as pension funds and insurance companies—see the benefits of steady, long-term revenue from renting over the volatility of individual sales.
While the UK’s BTR sector is still growing, its expansion has helped professionalize the rental market and offer renters better-managed housing solutions.
United States: A Different Approach to BTR
In the United States, BTR has taken on a unique form—rather than focusing on apartments, developers are creating entire suburban neighborhoods of single-family homes or townhouses for rent.
Millennials, especially those balancing student debt and high housing costs, are driving this shift, as renting offers greater flexibility and more affordable living options compared to locking in a 30-year mortgage at high interest rates.
With $3.7 billion invested in BTR communities and 40,000 new homes under construction in 2022, the sector is reshaping the idea of the American Dream. Industry experts predict that future generations will embrace lifestyle flexibility, diverse investment portfolios, and access to well-designed rental communities rather than tying their wealth to a single home.
Hong Kong: Luxury and High-End Living
In Hong Kong, BTR has primarily targeted the luxury market, with properties resembling high-end serviced apartments designed for corporate executives and affluent families.
However, with recent shifts in the property market, developers have been converting properties into rentals to adapt to changing demand. Despite this, homeownership remains a major goal for most residents, supported by government policies that promote property ownership.
Australia’s Bright Future in BTR
While Australia’s BTR industry is still in its early stages, it has the potential to transform the rental market and create more diverse housing options.
The sector is already seeing strong investor interest, with over 8,000 BTR apartments under construction in 2023 and another 13,000 approved for development. Governments are also actively supporting the industry, with incentives such as Victoria’s 50% land tax discount for BTR projects.
Australia is taking lessons from the UK, US, and beyond—ensuring that BTR developments cater to a broad range of tenants rather than just the luxury market. Many projects are focused on community-building, long-term stability, and high-quality living spaces with amenities that enhance everyday life.
Unlike traditional rental properties, which can be inconsistent in management and upkeep, BTR offers a more professional and reliable renting experience, with entire buildings managed by experienced operators. This helps ensure better tenant services, modern amenities, and long-term rental security.
With continued government support and investor confidence, BTR in Australia is poised to grow rapidly—helping to increase housing supply, improve the rental experience, and create a more stable and diverse property market for the future.
As global trends show, BTR is here to stay, and Australia is well-positioned to embrace its potential.
Source: ABC News
