Build to rent is defined as multi-unit residential developments that are designed and built as long-term rental housing with a single ownership entity. It is an established asset class in some major markets such as the US and UK and has been gaining traction in Australia.
Overcoming constraints around build to rent development enables growth in housing stock to accommodate a growing renter population of people who are unable to or unwilling to purchase a residential property.
Build to rent has growth potential in New Zealand and is increasingly being considered as an alternative asset class. The local market is in its infancy, with a handful of developments planned, underway, or recently completed.
This research paper examines the prospects for build to rent in New Zealand, referencing overseas contexts to identify the challenges and opportunities in our unique housing market.