In the face of the ongoing rental crisis, Melbourne tenants are seeking alternatives to the traditional rental model, with the build-to-rent (BTR) option becoming increasingly appealing.
“We’re facing extremely challenging conditions for renters at the moment, with rental affordability in Victoria at its worst level in around a decade, and substantially worse than it was a few years ago,” said senior PropTrack economist Angus Moore.
The rise of the BTR model offers a viable alternative to the traditional reliance on private landlords, addressing long-standing issues such as unpredictable leases, insufficient maintenance, and soaring rents.
“A big part of why we’re seeing such challenging affordability is that we just don’t have enough homes where people are looking to rent and live, which is making them far more expensive than they used to be,” Mr. Moore added.
“Solving that has to come down to building more homes, and finding new models and ways of delivering those projects.”
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Residents’ Lounge, Home Docklands
Leading the BTR model
Home, featuring multiple innovative and thoughtfully designed BTR sites across Melbourne’s inner-city suburbs—including Southbank, Richmond, and Docklands—and upcoming sites in Sydney, is at the forefront of the build-to-rent movement in Australia.
“Over recent years, build-to-rent has proven its ability to deliver quality homes, foster communities, and improve the experience of renters,” explained Head of Home, Christian Grahame.
“It’s a pragmatic, outcomes-focused model that helps solve the housing crisis by providing a variety of accommodation options.”
Residents are not just impressed by the theoretical benefits; they are genuinely delighted with the tangible advantages of living in BTR developments such as long-term leases and timely, reliable property management.
Many residents also appreciate the community-centric ethos promoted by BTR properties. Designed with communal spaces and services that encourage social interaction, these developments foster a sense of belonging and neighbourliness.
Embracing liveability and greener communities
Beyond enhancing the rental experience, Home is committed to promoting sustainable living and reducing environmental impact.
The company is actively working towards utilising responsible materials in its developments. This includes the use of high-quality, robust, and durable materials that have low levels of volatile organic compounds (VOCs) and minimal or no formaldehyde in engineered wood products, promoting healthier indoor air quality for residents.
Home collaborates with local designers and makers to ensure as much locally sourced furniture as possible.
Design principles at Home prioritise natural light access, optimal orientation, and views, enhancing the wellbeing of residents while reducing energy consumption.
The introduction and emphasis on green spaces—both indoors and outdoors—not only provide aesthetic appeal but also improve air quality and foster a connection with nature.
Additionally, they provide purposefully designed wellness spaces to support the physical and mental wellbeing of residents.
“Home is also working towards dedicated recycling streams are available within their communities, including facilities for organics, batteries, light globes, e-cycling, and clothing.
“By engaging residents in sustainable practices, we also aim to foster a community-wide commitment to environmental stewardship,” explains Mr Grahame.
Indoor Pool, Home Docklands.
Addressing current rental issues in Melbourne
Realestate.com.au senior economist Anne Flaherty said that the number of active bonds across Victoria fell by approximately 22,000 in the past year.
The most likely cause being that tenants are seeking alternative housing options to the traditional model, or are looking to buy.
“The bonds data shows clearly that we have seen a decrease in rental homes,” she said.
Accounts of renters being compelled to relocate multiple times have also become common, as rising interest rates have forced some owners to either sell their investment properties or drastically increase weekly rents.
Mr Moore emphasised the need for innovative solutions: “Solving that has to come down to building more homes, and finding new models and ways of delivering those projects.”
Home Club, Residents’ Lounge, Docklands.
Build-to-rent: A viable alternative for tenants seeking more
Build-to-rent is transforming the rental experience by putting tenants first.
Tenants moving from individually owned properties to build-to-rent (BTR) developments often express relief at having predictable lease terms and timely, professional property management.
Unlike traditional rentals—typically owned by individual investors who may be highly leveraged and vulnerable to interest rate volatility—build-to-rent properties are designed and operated by institutional landlords.
One of the most appealing features is the option of longer leases, giving tenants the stability to plan their futures.
These properties also come with dedicated maintenance teams, ensuring repairs are handled promptly, and modern amenities that elevate the living experience. Additionally, tenant-friendly policies foster a sense of community.
“Build-to-rent is all about convenience and predictability,” said Mr Grahame. “We aim to eliminate the stress renters face in traditional setups by prioritising their comfort and security.”
Rather than simply providing renters an opportunity to ‘save money’, Home offers a value-added proposition for those who rent by choice, explains Mr Grahame.
Offering top-tier amenities and services not found in traditional rentals, including an on-site concierge, apartment cleaning, dry cleaning, home maintenance, and handyman services, tenants can finally access items previously only accessible to luxury property owners.
Because, while Australia’s financial system often assumes property ownership is the primary path to wealth creation, not everyone shares this view.
“It gives residents the chance to build wealth in different ways, either through investing outside the housing market or by ‘rentvesting’.”
Outdoor Terrace, Home Docklands.
BTR: Global influence and success
Build-to-rent is not a new concept—cities like London and New York have embraced the model for years, proving to be highly successful in meeting the needs of urban renters.
In London, BTR developments have become a key part of the rental market, with over 70,000 units delivered in the past decade.
Melbourne is now following suit, with local developers drawing inspiration from international markets.
With a growing population, it’s prime time for the model to be offered across our busy capital cities.
“We’ve seen how build-to-rent can enhance urban living overseas, and we’re confident it will bring similar benefits here,” said Mr Grahame.
Residents Lounge, Home Docklands.
Future of renting in Melbourne
As the population increases and tenants become more discerning with their choice of where they want to live, BTR offers a strong alternative to the traditional renting model and a potential way to stabilise the rental crisis.
Policymakers are also taking notice. Proposed incentives, such as tax benefits for BTR developers and zoning reforms, could further accelerate the model’s growth.
The designs of BTR developments like Home appeal to the future health of the city with strong eco-friendly and community-building features compared to often outdated designs found in traditional private properties.
This holistic approach positions the BTR model as a forward-thinking solution to the challenges facing Melbourne’s rental market.
