Vertical Communities

AUSTRALIAN PROPERTY INSIGHTS

VERTICAL COMMUNITIES

DEMAND DRIVERS

A structural shift in Australia’s rental dynamics is fuelling the rise of BTR. Home ownership has become increasingly out of reach in major cities and the average renting period has lengthened. Over the past 15 years, renter growth has significantly outpaced owner-occupier growth across all age brackets.

The income profile of renters is also shifting. High-income households now represent a growing share of the rental base – driven by affordability barriers to ownership and changing lifestyle preferences. These “premium renters” are more likely to seek out buildings with characteristics similar to what BTR assets offer: amenity-rich with professional management and lease flexibility.

CHART 4

RENTING BY AGE GROUP

20 30 40 50 60 70

0 10

Under 35

35-54

55 And Over

1996 2001

2006 2011

2016 2021

*Sydney, Melbourne & Brisbane

Source: ABS

CHART 5

INCOME DISTRIBUTION OF RENTER HOUSEHOLDS

20 25 30 35 40 45

0 5 10 15

$51,550-$77,949

$77,950-$129,949

$129,950-$155,949

>$156,000

1996 2001

2006 2011

2016 2021

*Sydney, Melbourne & Brisbane

Source: ABS

5

CUSHMAN & WAKEFIELD

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