Australia’s Build to Rent (BtR) sector is experiencing unprecedented growth, with BDO's State of Build to Rent Report 2025 revealing the national pipeline has surged 35% over the past year. More than 39,300 apartments across 113 projects are in the works, representing a total capital value of around $30.1 billion.
This sharp rise, up from 29,100 apartments and $21.4 billion just a year earlier, highlights the rapid growth of BtR as a key force in Australia's residential landscape.
“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, partner, project & infrastructure advisory at accounting and advisory firm, BDO Australia.
“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.”
Victoria leads the national BtR pipeline in both operational and total volume of 19,719 units, reflecting strong developer and institutional confidence. Victoria, however, is at a turning point with investment stifled by the many taxes imposed on the sector including the foreign purchaser additional duty tax surcharges.
New South Wales holds the second-largest BtR pipeline with a total of 11,864 apartments, driven by institutional capital interest, but most projects remain in planning, highlighting the need for streamlined approval pathways to unlock supply.
Queensland rounds up the top three with 6,124 units. The state offers strong investment potential due to inner-city housing shortages and consistently high rental growth but faces delivery challenges from high construction costs and labour diversion to major infrastructure projects including the Olympic Games construction program.
Most institutional capital now remains focused on the eastern seaboard, where scale and market depth support further expansion.
“This level of growth is a turning point for investors, developers, government and renters,” Luke said.
“We’ve more than doubled the number of completed and leasing apartments in the past year alone. These aren’t just numbers, they reflect real homes, real communities, and lasting economic impact, many of which include a component of affordable housing for key workers.”
“The sector’s operational maturity is now proven. Our research shows 80% of BtR apartments in the pipeline are managed by dedicated platforms, ensuring quality, consistency, and a better experience for residents,” Luke said.
“Australia’s BtR is not just being built, it’s being managed well, which is critical for both investor confidence and community outcomes.”
Looking ahead, BDO has outlined six foundational priorities to drive the next phase of sector maturity: policy certainty and planning reform, tax and regulatory alignment, greater data transparency, elevated tenant experiences, measurable ESG outcomes, and broader diversification within BtR models.
“Clarity and collaboration across government, investors, and developers will unlock even greater potential,” said Luke.
“BtR offers a people-centric solution to Australia’s housing challenges. By focusing on what tenants truly value; flexibility, affordability, and amenity. We’re building more than properties; we’re building the future of Australian living.”
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