Institutional investors back $30.1 billion surge in build-to-rent developments
Australia’s build-to-rent (BTR) sector is experiencing rapid expansion, with institutional investors increasingly adopting the model as a core part of their long-term strategies.
According to the 2025 BTR report of accounting and advisory firm BDO, the sector has developed from a niche market into a major focus for investment, driven by ongoing housing shortages and changing renter preferences.
The report identifies a national pipeline valued at $30.1 billion, covering 113 projects and 39,316 apartments. This represents a 41% increase in sector value compared to the previous year. Six new platforms have entered the market, bringing additional capital and scale, while 80% of BtR apartments are expected to be managed by dedicated platforms.
Victoria leads the country in BTR activity, with 51 projects and 19,719 units. New South Wales follows with 35 projects and 11,864 units, while Queensland has 17 projects and 6,124 units, despite some delivery challenges. Other states are also seeing growth, with institutional capital largely concentrated on the eastern seaboard. The figures include projects that are operational, under construction, or planned.
The BDO report points to several factors behind the sector’s growth. Institutional owners such as superannuation funds, sovereign wealth funds, and insurers are attracted to BTR for its stable, long-term returns.
BTR communities are also offering enhanced resident experiences, including concierge services, co-working spaces, and amenities tailored to renters. Operational maturity is increasing, with platforms like Nation, HOME, and Greystar setting new standards in tenant experience and asset management.
The expansion of build-to-rent may reduce demand for traditional home loans as more renters opt for professionally managed communities over buying. However, it also opens new opportunities for mortgage brokers to advise investors, developers, and landlords seeking finance for BTR projects, broadening their client base beyond individual homebuyers.
“Institutional investment in residential real estate is no longer a side bet; it’s a central strategy for long-term value and community impact,” said Luke Mackintosh (pictured), project and infrastructure advisory partner at BDO. “The momentum we’re seeing is a direct response to the sector’s resilience and the growing demand for purpose built rental housing creating greater sense of community and wellbeing.”
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