A More Connected Way to Rent: How Build-to-Rent is Changing Australia’s Rental Market

Although relatively young, Australia’s Build-to-Rent (BTR) sector is growing and already changing the way Australians rent. Investors are backing the sector, developers are enhancing the rental experience and residents are embracing the opportunity to live in high-quality, professionally managed homes with modern amenities.

A snapshot of the Australian BTR sector at the end of Q2 2025, based on research from BDO, shows the factors influencing the market and why more people are choosing BTR over traditional rental options.

What does BTR in Australia look like today?

With dedicated BTR platforms expanding their portfolios and new projects actively being sourced, the BTR sector is moving into a new phase of maturity.

According to a recent study by BDO, projects in the national BTR pipeline includes approximately 39,300 apartments across 113 developments, representing a total capital value of around A$30.1 billion.

Just a year ago, the pipeline was at 29,100 apartments worth A$21.4 billion. In only 12 months, more than 10,000 apartments and close to A$9 billion in value have been added, showing just how fast the sector is growing with investor support.

State BTR leaders in Australia

Victoria leads the BTR movement with 51 projects and 19,719 units (operating, underway and planned). New South Wales follows with 35 projects and 11,864 units. Queensland is gaining strong momentum with 17 projects and more than 6,000 units, while other states continue to build their presence with targeted growth.

Interest in BTR is picking up across other states, but most investments are still focused on the east coast (VIC, NSW and QLD), where markets are more established.

Transport-oriented development providing an opportunity

Policy support aimed at increasing housing density remains a key driver of the next wave of growth in Australia, with targeted planning reforms helping to bring more developments to market.

In Melbourne, Victoria’s Activity Centres program aims to support the development of 300,000 new homes by 2051 in areas close to transport, jobs and services.

In Sydney, the Transport Oriented Development (TOD) program is rezoning land and streamlining approvals around metro and rail stations, encouraging higher-density, mixed-use communities in strategically connected precincts.

Ahead of the 2032 Olympics, Brisbane is investing in major projects such as Brisbane Metro and Cross River Rail. The City Council has also launched a review of low-to-medium density residential zones to ease housing pressures by enabling greater density in suburbs already supported by infrastructure.

For BTR, these reforms make more sites available in accessible locations and establish more approval pathways. Projects near transport hubs are well positioned to benefit from both regulatory support and strong rental demand.

Resident retention and keeping occupancy high

Successful BTR operations prioritise renter experience, from design and amenities through to ongoing service delivery. Because the model is built for the long term, the focus is on keeping occupancy high, resident retention and supporting steady investment growth over time.

In Australia, about 80 per cent of BTR apartments in the pipeline will be run by dedicated management platforms, aimed at ensuring consistent service, well-maintained buildings and a better overall experience for renters.

Why renters choose BTR

BTR offer a more professional renting experience. What was once seen as a premium option is now recognised as simply a better way to rent. Rather than relying on landlords, buildings are managed by experienced operators. Day-to-day operational issues are resolved quickly and efficiently, which means that residents have more freedom to focus on the things that matter. This service layer is complemented by the amenities most BTR projects provide, from gyms, co-working spaces and communal dining areas through to wellness facilities like yoga studios, spas and treatment rooms.

Another defining feature is the community element of BTR. A development with shared spaces and amenities means residents have more opportunities to create friendships and form relationships, which is appealing for people who are moving to new areas.

What are the demographics of Build-to-Rent residents?

BTR communities attract a diverse range of residents, and the profile often varies depending on the location and design of each development.

Students are drawn to flexibility, but they also value the stability and support that come with professional management. Many live alone and benefit from shared spaces and activities that help them connect with others.

Working professionals often juggle demanding careers with limited time for exercise, socialising or self-care. For them, BTR offers convenient amenities and services that make it easier to maintain health, wellbeing and an active social life, while enjoying the convenience of city living.

Families appreciate shared events and activities that provide opportunities for connection and engagement, as well as practical conveniences that make it easier to prioritise wellbeing for themselves and their children.

Looking ahead

No longer just an up-and-coming concept, BTR is changing Australia’s rental landscape. Policy support and planning reforms are opening up new opportunities, particularly around transport hubs and key infrastructure, enabling developers to bring more projects to market and meet the demand for accessible and well-connected rental housing.

At the same time, the focus on resident experience and long-term occupancy ensures that BTR delivers both consistent returns for investors and a better everyday experience for residents.

As the sector continues to grow, BTR is set to redefine the standard for rental living in Australia, providing high-quality and community-focused homes for residents while delivering consistent opportunities for investors.

Sources

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