Why BtR’s Future Depends on Speed and Scale

The question is no longer whether build-to-rent (BtR) will become a key feature of Australia’s housing future—but whether the sector can deliver at pace, scale and with the right return on investment.

The build-to-rent sector is gathering traction, with ongoing year-on-year growth. Investors are leaning in, attracted by build-to-rent’s potential to combine reliable long-term yields and portfolio resilience with relief for renters. 

But alongside success stories are projects delayed, re-scoped or abandoned. Escalating construction costs, labour shortages and lengthy approvals continue to pressure feasibility.

To unlock the sector’s full potential, developers must pull a range of levers: robust cost estimation and control, innovative procurement, digital and modular innovation, and operational foresight, while delivering high-quality, sustainable designs that meet market expectations.

Nail the brief from inception to operation

Build-to-rent is not just about building apartments—it’s about creating communities where people want to live. Pools, gyms, co-working spaces, outdoor green areas, pet-friendly zones and so on are now market differentiators. Getting the design brief right is critical, with a clear understanding of how these higher-end features affect both capex and opex over the asset’s life. 

Operational excellence and proactive maintenance will be crucial to keeping residents satisfied and maintaining the asset’s appeal over decades. Every cost decision should be weighed against this whole-of-life perspective. Durable finishes and standardised mechanical systems can optimise maintenance costs while maintaining quality. 

Navigate cost escalation

Construction costs remain a defining challenge. Material and labour costs are volatile, so clear cost planning—stress-tested against shifting market conditions and supported by realistic contingencies—is essential to a viable business case.

Independent cost checks and scenario testing during design will help avoid unwelcome surprises when quotes arrive.

Proactive contractor engagement in procurement 

In a market under pressure, builders and subcontractors can afford to be selective. That said, the market shows reasonable interest in build-to-rent projects over build-to-sell (BtS), as dealing with a single stakeholder simplifies coordination and reduces complexity and risk. 

However, developers need to understand the impact of timing to market. Early engagement with the potential contractor tender pool will put the project on builders’ radars. A well-coordinated design at 70–80 per cent completion, competitively tendered to a robust selection of like-for-like contractors, is one of the best tender routes.

If there is significant risk in the timing, availability of tenderers or project complexity, Early Contractor Involvement (ECI) can help secure builder interest and buy-in, sharpen program certainty and mitigate supply chain risk. By the time tendering starts, competition with major infrastructure and residential projects may be intense, especially with the Brisbane 2032 Olympics drawing from the same workforce. 

Developers will need to act early to secure labour and builder capacity, but must also maintain competitive tension. Before committing, it is worth asking prospective builders about their current pipeline and whether they have the resources to deliver on time. Everyone’s priorities, constraints and targets need to be clearly understood and aligned.

Think beyond the site boundary  

Modular construction may help to speed construction amid labour shortages and on-site productivity constraints. Offsite manufacturing has potential to accelerate programs, improve quality control and reduce waste—offering faster time-to-market, lower exposure to site-based risk and earlier rental income.

But modular must be integrated from the start, with structural grids, servicing strategies and façade systems standardised and coordinated early. Logistics must also be carefully planned so components can get to site safely and in good condition, achieving compliance with Australian standards and installing seamlessly.

Leverage digital tools 

BIM can make a huge difference in the design phase as well as in construction: coordinating consultants, tracking changes, reducing rework and delivering greater predictability of cost and schedule. In build-to-rent, perhaps its greatest advantage is optimising long-term facilities management. 

A well-governed BIM environment and model provides the digital backbone for efficient building services, streamlined maintenance planning and lower operational costs—protecting resident experience and long-term asset value. 

Embed sustainability 

Strong environmental performance drives value—delivering resilient assets and healthier, more affordable living. Decisions around building orientation, glazing, insulation and mechanical services have long-term implications for tenant satisfaction and operating costs. 

Reducing embodied carbon is an increasing focus, while electrifying building systems and enabling renewables can help meet ESG targets while also reducing tenants’ utility costs. 

For build-to-rent apartments to be safe and sustainable across their lifecycle, priority must be placed on structural adequacy, fire resistance and weatherproofing, looking beyond compliance to long-term performance. Designing for resilience against climate risks is essential for futureproofing assets and protecting long-term returns.

Moving forward with confidence

Build-to-rent can play a major role in easing Australia’s housing crisis, but success depends on disciplined planning, smart procurement, digital and modular innovation, and a commitment to quality and sustainability over the lifecycle.

The burning question for investors and developers should be whether they are making the right decisions early enough to protect their project’s feasibility, accelerate delivery, and maximise long-term value.

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About the authors

Brendan Browne is a state director and NSW residential sector lead. Browne has over 15 years of experience in quantity surveying and cost management in Australia and Ireland, working across a range of sectors spanning commercial, education, retail and residential. As WT’s residential sector lead for NSW, Browne focuses on strategic initiatives to create value for clients operating in this market, bringing a wealth of experience in build-to-sell and build-to-rent.

Amy Chen is the Queensland lead for high-rise residential (including build-to-rent, student accommodation, and mixed-use), industrial, and commercial sectors at WT. She brings extensive experience in cost planning, cost control, procurement, and contract administration across a range of sectors. Chen has a strong record in managing complex development projects, with a focus on optimising resources, aligning stakeholder objectives, and delivering on time and within budget. 

About WT

WT is a leading international project advisory firm with more than 75 years of multi-sector experience. Our clients can tap into the collective thinking of over 2000 of the best people in the industry, operating from 70-plus offices throughout Australia, New Zealand, Asia, India, Middle East, North America, Africa, the UK and Europe. In Australia, we support our clients across property, construction and infrastructure with an award-winning team of 500 specialists in portfolio and program advisory, cost management and quantity surveying, commercial advisory, carbon and sustainability, asset and facilities management, and digital solutions.