Build to rent housing is a unique concept where a property is constructed and held under single ownership. Instead of selling individual units separately, the primary objective is to rent them out, it offers tenants the flexibility of renting while enjoying the stability typically associated with traditional homeownership, as the property is held for the long term.

While this housing model isn’t entirely new and is more common in countries like the US and the UK, it’s gaining ground in Australia. Currently, there are more than 60 build to rent projects in various stages of planning or construction across the nation, aiming to introduce nearly 20,000 new dwellings. According to a recent report by Ernst & Young, embracing these build to rent initiatives could potentially lead to an additional 150,000 homes over the next decade.

Experts tend to agree that increasing the supply of rental properties could help alleviate the housing crisis, but it’s important to note that this won’t happen overnight. Steve Mann, CEO of the Urban Developments Institute of Australia NSW, highlights that while it may not provide immediate solutions, it will undoubtedly shape the future of housing in a meaningful way.

In essence, having more housing options available could create downward pressure on rental and property prices, ultimately making housing more affordable for a broader spectrum of people. Those residing in build to rent properties can enjoy professionally managed homes, great locations, impressive amenities, and the assurance of long-term housing stability.

Both the Australian government and several states are taking steps to encourage investment in build to rent projects. For example, New South Wales has allocated a substantial $60 million to initiate build to rent projects in areas facing severe housing shortages. According to the Ernst & Young report, endorsing these build to rent schemes could potentially add an additional 150,000 homes to the Australian housing landscape over the next decade, encouraging news for those in search of affordable and dependable housing alternatives.