What is build-to-rent and how will it shape housing in Queensland?
What is build-to-rent and how will it shape housing in Queensland?
The ‘build-to-rent’ model, which has gained traction worldwide, is now in Queensland. What exactly is build-to-rent and how will it meet the increased demand for affordable and high-quality housing?
What is build-to-rent?
In Queensland, nearly one third (31%) of households are renting which is slightly more than the Australian average (30.6%)
Unlike the traditional model of building properties for others to buy them, build-to-rent properties are purpose-built larger developments, where all the properties are owned by a single entity and rented out.
Build-to-rent is still a relatively new concept in Australia but has a strong history in the United Kingdom and United States.
What role does build-to-rent play in the current housing climate?
Rachel Gallagher, researcher and public policy professional from the University of Queensland says build-to-rent has the potential to be a real disruptor in the current housing system.
“Instead of individuals owning one or two properties and renting them out, or developers constructing new dwellings to sell, build-to-rent developments are held by developers for the long-term,’ Rachel said.
“The hope is that build-to-rent developments will result in high quality apartments offering secure tenancies, close to great parks, shops, workplaces and schools.
Rachel also noted that current build-to-rent projects are premium developments in inner city locations, and there needs to be options for lower income households.
As part of its expanded $2 billion Housing Investment Fund, the Queensland Government is partnering with the development sector to deliver affordable rental housing through new Build-to-Rent developments, the Build-To-Rent Pilot Project provide affordable and secure housing for more Queenslanders, while driving investment in the residential development sector.
A targeted Government rental subsidy will be provided to deliver affordable rental housing within the Build-to-Rent developments in Brisbane. Final developments will provide all residents with a high amenity rental experience, access to transport and employment nodes and premium service delivery.
Stability in uncertain times
The build-to-rent model of development ensures renters have access to housing that’s not only the right fit for them, but also for more stable and predictable.
With build-to-rent properties, it’s common for renters to be offered long-term, fixed leases, providing residents with security and the opportunity to establish roots without the fear of unexpected property sales.
Focus on community
Build-to-rent developments prioritise tenant satisfaction, with complexes usually offering high-quality apartments with modern designs, durable construction, and energy-efficient features.
These properties often include amenities such as fitness centers, swimming pools, communal gardens, and shared workspaces, by utilizing common space effectively, the focus is on communal areas which promote a sense of community, fostering social interaction among residents and creating a holistic living environment.
Long-term benefits for renters
The build-to-rent model offers a lot of long-term benefits for renters.
When tenants are not burdened with the costs and responsibilities associated with homeownership, they can redirect their finances towards personal goals or investments.
Build-to-rent properties often provide greater flexibility, enabling tenants to adapt their living arrangements without being tied down by property ownership. This flexibility appeals to individuals or families who value mobility or do not wish to commit to the demands and costs associated with homeownership.
Want to see more build-to-rent models in Queensland?
Given rapid population growth in Queensland, there is a huge demand to address the challenges with solutions like build-to-rent developments.
This is where the regional plans comes into play.
The regional plans act as a strategic framework to manage growth and enable sufficient housing supply (and choice) across each region.
Last updated: 04 Oct 2023