REIP Inside Real Estate – 17 April 2024: Action to Ease Rental Crisis

The future of housing and renting in Australia has been in the news for some time and while there is never a ‘silver bullet’ solution to a housing crisis, it’s important we start thinking outside the box to solve both the shorter-term issues and contribute to long term stability.

2023 placed the spotlight on renters with low or no vacancy and soaring rents putting enormous pressure on both them and the property managers who take care of them.

Property Management is often underestimated in its crucial role of overseeing $3 trillion in rental assets, and in its role in shaping policy setting.

REIA has recently released two reports; the Build to Rent: A Market Analysis and the REIA Property Management Action Plan to shine a much-needed light on this critical real estate function.

REIA’s ‘Build to Rent: A Market Analysis’ report examines how this strategy will help ease the rental crisis both now and in the future. Some of the key headlines include:

Despite growing momentum behind Build-to-Rent (BTR) developments, these initiatives represent just 3% of existing rental stock within Australia’s eastern cities.
While there are 3,8000 completed BTR projects, another 43% of planned projects currently have no approval.
52% of the BTR pipeline is owned by foreign investors.
The proportion of total new dwelling stock built in public ownership has dropped significantly over the last 40 years and since 1984, publicly owned dwellings have decreased by 10.4% in NSW, 5.6% in VIC and 4.7% in QLD.
While private investors will continue to dominate the rental landscape for the foreseeable future, BTR developments are poised to offer a promising avenue for addressing housing supply challenges.

You can read the full Build to Rent report here.

The REIA Property Management Action plan has been developed in consultation with other Real Estate Institutes (REIs) and aims to identify pragmatic measures that can unlock growth in the rental sector and better support the property management industry.

Harsh economic conditions mean that for 8 million Australians’ renting remains the only viable housing option, but in the current market, they face low vacancies and escalating rents.

This action plan emphasises the need for a national property management framework that transcends state-based regulations and the key themes identified for action include People, Investment, Health & Wellbeing and Innovation.

You can read the full Property Management Action plan here.

While changing market and economic conditions are out of our control, when it comes to our all-important rental market, we can come together to make positive changes for our teams, our renters and the industry as a whole.

I want to finish today with an acknowledgement of the horrific situation we all saw unfold in Bondi Westfield last Saturday. I’m sure many of us are still in shock and for now, all I can do is offer my heartfelt sympathies to anyone who has been affected. Please take care of each other.

Until next time.

Stay connected,