Australia’s institutional Build to Rent (BtR) sector has entered a new phase, with the national pipeline rising to 51,000 apartments.
An estimated total value of $40.1 billion, according to BDO Australia’s latest 2026 report.
That’s up from 39,300 apartments and $30.1 billion a year ago; a lift of around 30% in apartments and 33% in total value in just 12 months.
Behind those numbers is a defining shift; Sydney and New South Wales is setting the pace for the next wave of build to rent growth in Australia.
“Build to Rent is no longer a concept story.
"It is an operating, income-producing asset class delivering real homes and stronger communities,” said real estate advisory services partner at BDO Australia, Luke Mackintosh.
“For the first time since the emergence of BtR in Australia, New South Wales has overtaken Victoria as the dominant growth market for forward pipeline delivery.
"This matters because it signals when changes to planning and State taxes occur capital investment is following, which together is supporting the delivery of new BtR housing at scale.
“Targeted planning and tax policy in NSW has driven strong growth in the forward pipeline of BTR housing.
"The opportunity now exists, for policy makers to cement NSW as the home of BTR through extending existing BTR exemptions for foreign Surcharge Purchaser Duty to operational BTR assets, aligning it with other institutional grade asset classes.
"This is critical to allow existing capital to be recycled and new “core” capital to flow into the sector.
“And, as for renters, more BtR projects move through approvals and into delivery, renters should see more professionally managed rental options coming online, particularly in Sydney.
"This increase in supply and competition will help ease pressure over the medium to long time frame providing tenants with greater choices.”
BDO’s Q1 2026 analysis shows Australia now has 33 operating platforms (up from 29), with sector activity increasingly supported by dedicated management models and a stronger focus on tenant experience.
“Melbourne helped institutionalise BtR in Australia, and it remains the country’s largest market today,” said Mackintosh.
"Sydney is closing the gap rapidly, and it’s reshaping national delivery patterns in the process.”
BDO’s Build to Rent Report positions BtR as a people-first response to Australia’s evolving rental needs; combining professionally managed homes with amenities and services designed around everyday life.
The sector is still small relative to Australia’s overall rental market, representing only around 1.15% of rental stock and 0.31% of total housing stock, underscoring both how early the market remains and how much runway exists for future growth.
BDO’s research suggests BtR could reach 350,000 apartments over the next 10 years, if policy settings continue to improve and investment conditions remain supportive.
“BtR is creating more choice for renters, more certainty for investors, and more capacity for cities because it is designed to be owned and operated for the long term.
"Institutional BtR won’t replace the need for Build to Sell product and first home buyer demand, this demand will always exist, it is about providing greater rental choices in a very tight housing market,” said Mackintosh.
