Build-to-rent's housing potential runs into construction cost wall
High construction costs, tax disadvantages and tighter financing are holding back Australia's build-to-rent pipeline, prompting calls for policy reform and greater use of modular construction to get more rental homes built.
Factory-built apartment modules could help developers overcome some of the time and productivity challenges involved in delivering large-scale rental housing. (Image source: Freecity)
Australia’s build-to-rent sector could play a much larger role in easing the housing shortage, but rising construction costs, tax disadvantages and increasingly challenging project economics are holding back its expansion.
The sector has attracted growing institutional interest, with investors looking for long-term rental income from professionally managed residential buildings. Yet a combination of expensive construction, financing hurdles and p…
