‘Build to Rent’ Trend in Australia
The build-to-rent (BTR) industry is growing in Australia, but it’s still in its infancy compared with markets like the United States and the United Kingdom. BTR properties are similar to apartment buildings that aren’t owned by a single landlord but rather managed by an operator who rents out units on long-term leases.
The build-to-rent trend is big in the US and UK, but it’s only just catching on in Australia.
In the US and UK, build-to-rent has a long history. In fact, the US has been building and renting single-family homes since the 1970s to help solve its homelessness problem. This gave way to more sophisticated developments that include community centers, pools and gyms.
It’s only recently that we’ve seen a similar trend in Australia as developers are beginning to invest in apartment buildings specifically designed for rental purposes. But while there is definitely growth happening in this space at present, it’s still early days — there aren’t many projects underway yet or being built.
The rise of the share economy has made renting the preferred option for many Australians.
The share economy is growing in popularity, and it’s easy to see why. In a world where the cost of living continues to rise, many Australians are looking for ways to save money. The share economy offers three main benefits:
- It’s cheaper than owning a car
- It’s cheaper than owning a house
- It’s cheaper than owning a boat!
The housing affordability crisis makes it hard for Australians to access home ownership.
Many Australians are unable to afford home ownership, and the trend toward renting is growing. Rent prices are increasing faster than wages, making it harder for people to save up enough money to buy a house. As a result, more Australians are choosing to rent rather than buy.
Renting has become more popular with younger people who do not want the commitment of owning property or cannot afford a mortgage. However, renting is also becoming popular among families who cannot afford to buy their own homes because they have children or want better schools for their children than what they can get in public housing areas that often lack amenities such as playgrounds and parks.
Australian citizens prefer a culture of living together and sharing household spaces, particularly with young people.
Australia is a nation that is both urban and rural. In fact, it’s one of the most urbanized countries in the world. The Australian government has been promoting this trend for several decades, even providing tax incentives to encourage people to buy or build homes in urban centers rather than rural areas.
As a result, Australians are attracted to modern city living and the close proximity to work and entertainment that renting offers; many don’t want or need the responsibility of home ownership but still want access to amenities like gyms, cinemas, restaurants and cafes.
Australians are attracted to modern city living and the close proximity to work and entertainment that renting offers.
What is Build to Rent?
Build to Rent (BTR) is the process of creating a property for rental purposes, rather than for sale. This means that all the homes are designed and built for short-term rentals, which often means they’re modern in design and have all the mod cons you’d expect from a hotel or serviced apartment.
Build to Rent properties provide convenience: they’re close to work and entertainment facilities, as well as public transport networks – meaning no more long commutes! These homes are also fully furnished so that renters can move straight in without needing to worry about finding furniture or appliances at short notice.
Build-to-rent offers investors the opportunity to invest in a robust sector.
Build-to-rent offers investors the opportunity to invest in a robust sector that has been growing in popularity over the last few years. Build-to-rent properties are typically long term leases with tenants paying market rents and so providing stable income streams over time. This can help offset some of the risk associated with traditional buy and hold strategies where tenants may move short term or default on their lease agreements.
Investment in build-to-rent properties can help the economy by increasing construction jobs and keeping money in Australia.
Build-to-rent is an exciting new trend in Australian real estate, where you can invest in the future of the Australian economy. Build to Rent properties create jobs for construction workers and keep money invested locally—instead of overseas, like so many other types of investments do.
Investing in build-to-rent properties will help ensure a bright future for this country by increasing construction jobs and keeping money invested here at home instead of sending it overseas.
As you can see, there are a lot of reasons why build-to-rent projects are worth considering for your next property development venture. Laurent Visuals is here to help with any 3D rendering requirements you have to bring you project to life. Contacts us to discuss your next project.
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