Build to Rent specialist Franklin St’s paper ‘The Build to Rent Equation’ highlights how Build to Rent as an asset class is structured.
Build to Rent is still relatively new to the Australian market and therefore still has much progression to go through to catch-up to the global market.
It involves the institutional ownership of residential real estate at scale, however, Build to Rent provides a faster journey from concept through to completion. This has been identified as critical in supporting the nation’s current housing shortage.
Across Australia, less than ten purpose designed assets are operating as of October 2023. Comparatively, the Build to Rent asset class is incredibly prevalent in markets globally.
The ‘US National Multifamily & Apartment Completions & Pipeline’ chart highlights the relative new supply of Build to Sell and Build to Rent apartments in the US. Build to Rent across the country has boomed, surpassing its Build to Sell counterpart.
According to property consultancy Knight Frank’s research (September 2023), the industry in the UK started to rapidly take shape just eight years ago. Now there are over 83,000 units completed and operational.
Build to Rent is prevalent in other major economies and has rapidly emerged in the UK. Franklin St indicate that the Australian market is about to experience a paradigm shift in how housing and apartments are developed, designed, operated and owned. This shift will have a large impact on how Australians live.
