Increase Government Support for Build-to-Rent: Should We Expect Affordable Housing?

Swanzy-Impraim, S; Ge, J; Mangioni, V

Increase Government Support for Build-to-Rent: Should We Expect Affordable Housing?

Swanzy-Impraim, S

Ge, J Mangioni, V

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Publisher:: MDPI AG
Publication Type:: Journal Article
Citation:: Buildings, 2023, 13, (9), pp. 1-19
Issue Date:: 2023-08-24

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Field	Value	Language
dc.contributor.author	Swanzy-Impraim, S https://orcid.org/0000-0002-7709-7889
dc.contributor.author	Ge, J
dc.contributor.author	Mangioni, V
dc.date.accessioned	2023-08-24T22:33:37Z
dc.date.available	2023-08-22
dc.date.available	2023-08-24T22:33:37Z
dc.date.issued	2023-08-24
dc.identifier.citation	Buildings, 2023, 13, (9), pp. 1-19
dc.identifier.issn	2075-5309
dc.identifier.uri	http://hdl.handle.net/10453/171821
dc.description.abstract	Build-to-rent (BTR) is an important pathway for rental housing supply across the cities of Australia. The discourse has become more prevalent as stakeholders seek government support to expand the sector to provide, amongst other reform measures, affordable rental accommodation. This paper examines the effectiveness of BTR as a pathway to affordable housing supply in Australia and identifies the additional reforms needed to increase that supply further. Interviews with key stakeholders were used to assess the success of the asset class to date and how it is likely to perform in increasing affordable rental housing supply, as well as what additional reforms may be required to expedite supply. The paper found that while BTR aims to scale up rental housing supply, its limitations in its present form demonstrate the need for additional reforms. At present, unfavorable taxes, inner-city locational attributes, and ultramodern services make the asset class a high-end housing model. Experts posit that BTR rental prices are justified given the quality amenities and the 24/7 onsite professional management. While it is a premium product, several BTR projects in Australia have included portions of those projects for affordable housing. The study concluded that BTR can generate affordable housing outcomes in Australia. As more developments take place across the private sector, several regulatory reforms in land release and taxes are needed to produce a sizable portfolio of affordable BTR. Without government support and regulation through additional supply-side incentives, development and recurrent holding costs will remain high, making BTR unaffordable to many urban residents.
dc.language	en
dc.publisher	MDPI AG
dc.relation.ispartof	Buildings
dc.relation.isbasedon	10.3390/buildings13092146
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1201 Architecture, 1202 Building, 1203 Design Practice and Management
dc.subject.classification	3301 Architecture
dc.subject.classification	3302 Building
dc.subject.classification	4005 Civil engineering
dc.title	Increase Government Support for Build-to-Rent: Should We Expect Affordable Housing?
dc.type	Journal Article
utslib.citation.volume	13
utslib.for	1201 Architecture
utslib.for	1202 Building
utslib.for	1203 Design Practice and Management
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
utslib.copyright.status	open_access	*
pubs.consider-herdc	true
dc.date.updated	2023-08-24T22:33:35Z
pubs.issue	9
pubs.publication-status	Published online
pubs.volume	13
utslib.citation.issue	9

Abstract:

Build-to-rent (BTR) is an important pathway for rental housing supply across the cities of Australia. The discourse has become more prevalent as stakeholders seek government support to expand the sector to provide, amongst other reform measures, affordable rental accommodation. This paper examines the effectiveness of BTR as a pathway to affordable housing supply in Australia and identifies the additional reforms needed to increase that supply further. Interviews with key stakeholders were used to assess the success of the asset class to date and how it is likely to perform in increasing affordable rental housing supply, as well as what additional reforms may be required to expedite supply. The paper found that while BTR aims to scale up rental housing supply, its limitations in its present form demonstrate the need for additional reforms. At present, unfavorable taxes, inner-city locational attributes, and ultramodern services make the asset class a high-end housing model. Experts posit that BTR rental prices are justified given the quality amenities and the 24/7 onsite professional management. While it is a premium product, several BTR projects in Australia have included portions of those projects for affordable housing. The study concluded that BTR can generate affordable housing outcomes in Australia. As more developments take place across the private sector, several regulatory reforms in land release and taxes are needed to produce a sizable portfolio of affordable BTR. Without government support and regulation through additional supply-side incentives, development and recurrent holding costs will remain high, making BTR unaffordable to many urban residents.

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http://hdl.handle.net/10453/171821