Australia’s housing landscape is undergoing a transformation. With rising migration, an increasing demand for rental properties, and persistent supply shortages, the Build-to-Rent (BTR) sector has become a key player in addressing the nation’s housing challenges. At AGLK, we’ve had a front-row seat in these changes, working across the residential and BTR sectors as trusted service consultants. This blog presents a comprehensive, fact-checked overview of what’s driving growth in BTR, from investment trends to construction hurdles and innovative solutions for the future.
The Growing Demand for Build-to-Rent in Australia
Australia’s population is growing rapidly, driven by strong migration. In fact, net overseas migration reached 536,000 in 2022–2023, and it’s expected to remain high in the coming years. This influx has created a housing supply shortfall of nearly 180,000 dwellings since 2022, with demand far outpacing supply. As a result, institutional investors are looking increasingly at BTR as a stable, long-term investment, driven by the need for quality rental housing.
BTR properties have become a more attractive option for developers and investors alike. Yields on these developments typically range from 3.5% to 5%, with low vacancy rates across Australia—currently around 1.1% nationally. With migration continuing to grow and rental demand soaring, BTR is positioned to meet the needs of both tenants and investors, offering long-term financial stability and operational flexibility.
Renter Expectations Are Evolving
Renting in Australia is no longer just about finding a place to live. Increasingly, Australians want flexibility, community, and premium services in their rental homes. The modern renter is no longer confined to students or transient workers—young professionals, downsizers, and even families are all seeking long-term rental solutions that provide more than just four walls.
BTR developments are rising to meet this demand by offering a range of high-quality amenities such as gyms, rooftop gardens, co-working spaces, pet-friendly facilities, and more. Importantly, technology has become a core element of modern rental living, with smart access, app-based tenant management, and high-speed connectivity becoming essential features.
For developers, this means creating purpose-built communities where design and services are aligned with what tenants truly want: a seamless living experience that combines convenience, comfort, and lifestyle.
Designing for Long-Term Performance and Durability
Designing BTR properties requires a long-term approach, far beyond traditional one-off apartment sales. BTR developments must be durable, flexible, and efficient from both a performance and operational standpoint. At AGLK, we focus on creating systems that stand the test of time—from energy-efficient heating and cooling to smart building systems that reduce maintenance and operational costs.
Key design priorities for BTR include:
- Durability: Materials and finishes that withstand long-term wear.
- Flexibility: Layouts that can accommodate changing tenant needs.
- Sustainability: Systems that are energy-efficient and reduce long-term operational costs.
- Safety and Comfort: Meeting all building codes and ensuring tenant well-being.
Moreover, Design for Manufacture and Assembly (DfMA) is gaining attention in the construction sector as a way to reduce costs and timelines. While AGLK doesn’t currently offer DfMA in-house, we are actively partnering with specialists to integrate these efficiencies where possible.
Construction Challenges: Costs, Labour, and Delays
While demand for BTR is strong, the construction side of the equation presents significant challenges. Material costs have increased by 20–30% in recent years due to supply chain disruptions, and labour shortages continue to affect productivity, particularly in trades like carpentry and bricklaying. This has pushed up the cost of construction.
Additionally, planning delays are still a common hurdle. Many projects are delayed due to lengthy Development Application (DA) and Construction Certificate (CC) processes, adding to the holding costs for developers. To manage these risks, developers are increasingly opting for Early Contractor Involvement (ECI) contracts and flexible cost models.
Despite these challenges, construction is still progressing, and BTR projects are delivering valuable, sustainable living spaces that meet the growing demand for rental properties.
AGLK’s Role: Integrating MEP, Technology, and Security Solutions
At AGLK, we provide end-to-end services consulting that ensures every element of your BTR development is designed for performance and long-term success. Our services cover mechanical, electrical, fire, and hydraulic systems (MEP), as well as audio-visual (AV), security, and ICT infrastructure.
Here’s how we add value to BTR projects:
- Energy Efficiency and Sustainability: We design systems that reduce operational costs while improving tenant comfort.
- Smart Technology: From lobby digital signage to home and building automation, we ensure that BTR communities are equipped with the latest technology.
- Integrated Security and Access Control: Our security systems are designed to offer tenants peace of mind and provide owners with operational flexibility and complete control.
- Seamless Integration and Project Coordination: We coordinate closely with architects, builders, and developers to ensure that all systems work together efficiently, from day one.
Our approach is focused on delivering value across the lifecycle of the project—from design and construction through to post-occupancy support.
The Future of Build-to-Rent: A Growing Opportunity
The future of BTR in Australia looks bright. With government policies increasingly supportive of BTR development and demand for quality rental housing at an all-time high, the sector is poised to grow significantly over the next decade. BTR developments are no longer a niche market—they are becoming mainstream.
At AGLK, we are committed to being part of this future. We bring technical expertise, operational insight, and collaborative problem-solving to every project. Whether you’re an investor looking to enter the BTR market, a developer planning your next project, or an architect seeking to design a more sustainable building, AGLK is here to help you achieve your goals.
About AGLK
AGLK is a leading Australian consultancy providing building services design across mechanical, electrical, fire protection, hydraulic, technology (Communications, ICT, Audio Visual and Security) and active network disciplines. We specialise in Build-to-Rent, urban regeneration, and adaptive reuse projects. We are committed to helping our clients create high-performing, sustainable, and future-proof buildings that stand the test of time.
Get in touch today to see how we can help bring your next residential or BTR project to life.
Contact Us – info@aglk.com.au
Learn More – www.aglk.com.au