As the housing crisis persists and home ownership slips beyond the reach of many Australians, a new model of housing known as build-to-rent is increasingly being touted as part of the solution.
It may be coming to your neighbourhood soon — there are already more than 60 build-to-rent projects either planned or in construction across the country, delivering almost 20,000 new dwellings, according to Ernst & Young.
Build-to-rent housing is when a multi-unit building is held in single ownership.
Instead of building properties with the aim of selling each apartment for a profit, developers and investors retain ownership and rent them out to tenants.
The owner effectively becomes a landlord for a whole building of tenants and is responsible for its management and maintenance.
Build-to-rent housing is relatively common in countries like the US and the United Kingdom, but it's only been gathering momentum here in Australia recently.
Research by real estate services firm JLL Australia has found that prior to this year, there were only about 4,486 build-to-rent apartments across the country, with about 2,000 of those having being built last year alone.
But it predicts this number will more than double by the end of next year.
Advocates for the model argue it provides long-term stability for renters who are often living on six or 12-month leases and unable to properly put roots down in a home.
While build-to-rent principally offers certainty and stability for renters, there's no guarantee it will be affordable.
Most existing projects in Australia cater to middle or higher-income earners, with rent being set at, or above, the market rate.
Michael Fotheringham from the Australian Housing and Urban Research Institute (AHURI) said those living in build-to-rent housing often paid a premium because of the added benefits.
"There tends to be better security of tenure, it tends to be capacity to have longer-term leases or indefinite leases that are not generally available in the rental market," he said.
"It tends to come with things like concierge services or premium gym facilities, generally more upmarket offering almost approaching serviced apartment level."
Dr Fotheringham said government subsidies would be needed to encourage developers of build-to-rent projects to incorporate affordable dwellings.
"But as a sub-sector, build-to-rent is not focused on that area, by and large," he said.
Just about everyone agrees that building new rental properties will go some way in easing the housing crisis, but whether build-to-rent will provide any substantial relief is up for debate.
Steve Mann, the chief executive of Urban Development Institute of Australia NSW, which represents property developers, said it would be an important part of the future housing mix.
"It's not going to be the game changer in the early years, that's for sure, it's more in the longer period," Mr Mann said.
It's something governments are also throwing their support behind as they look for ways to boost options for renters.
The federal government has brought in tax concessions aimed at attracting more investment for build-to-rent developments, while states such as NSW and Victoria offer a 50 per cent reduction in land tax.
Last week's NSW budget also included $60 million to trial build-to-rent projects in the state's Northern Rivers and Illawarra-Shoalhaven — two regions that are experiencing an acute housing shortage.
Dr Fotheringham from AHURI argued Australia had lagged behind other countries because the previous federal government "didn't come to the table" with subsidies for the sector.
"I think it will make a contribution, but I don't think it's going to radically change our housing system," he said.
While just about every part of the country is dealing with a housing shortage — right from the city to the bush — build-to-rent projects are likely to crop up in inner-city areas, close to public transport services, according to Mr Mann.
He said the model could also work in medium-sized cities such as Wollongong and Newcastle.
"Occupants are wanting that flexibility, they want that ability to move quickly, they won't necessarily have lots of goods and belongings. That will attract the sort of younger cohort initially," Mr Mann said.
"If you don't need a car, then something like build-to-rent in a transit-oriented development is a fantastic outcome."
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