Rising Rents, Rising Hopes: Build-to-Rent Takes Root in New Zealand
Across New Zealand, the housing market has become synonymous with one word: unaffordable. Soaring house prices and stagnant wages have locked many Kiwis out of homeownership, leaving them trapped in a precarious rental market. But a new player is emerging on the scene, promising a glimmer of hope – BTR properties.
What is BTR?
Unlike traditional rental properties owned by individual landlords, BTR developments are purpose-built by institutional investors for the sole purpose of long-term rentals. These are typically multi-unit apartment buildings or complexes designed with community living in mind, often offering amenities like gyms, shared courtyards, and even on-site childcare.
Why is BTR Rising Now?
Several factors are fueling the BTR boom in New Zealand:
- Housing shortage: With traditional homeownership increasingly out of reach, the demand for quality rental options is at an all-time high. BTR offers a potential solution, injecting much-needed supply into the market.
- Shifting investor preferences: