According to the new ‘Keys to Change: Unlocking better, greener Build to Rent housing’ report from the Green Building Council of Australia (GBCA), Australia’s Build to Rent sector is redefining what renters and investors expect from housing as it continues to grow.
Over 50 Build to Rent developments across 16,400 apartments – over a third of Australia’s Build to Rent pipeline – is already registered to achieve Green Star ratings, the report finds.
“This momentum points to a new, scalable way to deliver energy efficient, high-quality rental housing in Australia. Institutional investors helped shape sustainability expectations in the office market – and these same institutional investors are now backing Build to Rent at scale. They’re seeking long-term value, operational excellence and verified sustainability. This has driven a sharp uptake in Green Star registrations for residential buildings.”
Davina Rooney, Chief Executive Officer, GBCA
Build to Rent differs from Build to Sell housing in a big way: assets are designed to be held for decades. That long-term horizon shifts investors’ approach to cost, risk and value.
“The Build to Rent sector is growing rapidly as investors respond to housing supply shortages and renters demand high-quality, sustainable and secure homes. Build to Rent communities are held for the long-term and investors prioritise quality, efficiency and durability. That’s where Green Star can play a leading role.”
Mike Zorbas, Chief Executive Officer, Property Council of Australia
Build to Rent backed by institutional investment currently comprises less than 1% of Australia’s residential apartment market. However, the GBCA, informed by NABERS modelling, estimates the sector could reach 10%, or 250,000 apartments, by 2050.
Scaling Build to Rent with Green Star could avoid around 150 million kilograms of carbon emissions each year – the equivalent of taking nearly 35,000 petrol-powered cars off the road annually.
“Institutional owners demand Green Star because they know without it, they can’t sell it. We’ve seen investors pull out of deals after 12 months of negotiations because the Green Star features were removed to reduce construction costs.”
Luke Mackintosh, Partner and Build to Rent Valuation and Transaction Advisory Specialist, BDO
While the report is designed with investors in mind, it also highlights good news for renters. Among the evidence, tenants in Green Star–rated apartments save an average of around $870 a year on energy bills.
Build to Rent will not solve Australia’s housing challenges on its own, the GBCA notes, but the sector offers a rare opportunity to lift expectations for rental housing at scale.
“When buildings perform better, everyone wins. Residents enjoy more comfortable, cheaper-to-run homes. Investors see steadier returns and more valuable assets. Governments meet housing targets while building inclusive, climate resilient communities. The opportunity is real – and unlocking it starts with Green Star.”
Davina Rooney, Chief Executive Officer, GBCA
