Build to rent important for a changing community

The way we live and the type of housing we choose is changing and the 2016 census data painted an interesting picture of this phenomenon in Wollongong.

The data tells us that more people in Wollongong are renting, competing for fewer properties and the amount we are paying for rentals is higher than the NSW average.

Australia-wide, the 2016 Census revealed that almost a third of the population rents (31 percent), in Wollongong it’s 30.3 per cent. We can expect this number to grow; with a growing university and new business and investment in Port Kembla, the demand for local rental properties will increase.

Sticking with the numbers, the number of unoccupied dwellings is also low in Wollongong, at only 7.9 per cent of total dwellings compared to 9.9 per cent across NSW. Wollongong also has higher median weekly rent than wider NSW.

The numbers are not surprising; Wollongong is a growing city with a high demand for housing. Better connections to a quickly developing south west Sydney and an increasing overflow of people from Sydney will only increase this demand.

What the numbers do tell us is that we need to look at creating more options for renters in Wollongong; properties that provide great amenity, secure, long term tenure, and innovative design. 

Build to rent is a sector where new developments are built for people to rent rather than buy and is well established in the US and UK. Managed by a single company, build to rent developments can provide people who rent with a more secure, quality rental option. At only five years old, the sector in the UK is still in its infancy yet will see 75,000 apartments begin construction this year –  an example of what we could achieve here.

At a Property Council Lunch this month, we heard from international and local industry experts who said that if we want to get the sector off the ground at scale here in NSW, we need government land and an alignment between all levels of government to work towards that common goal – something an industry roundtable convened by the NSW Government is currently working towards.   

Build to rent is an exciting new sector that can meet the changing needs of our community but we must plan and invest in our future so that everyone has access to affordable, quality housing.