Australia's developers are building rental complexes instead of selling homes, shrinking the supply for buyers while a million new residents arrive over five years. The government-backed shift to build-to-rent is making home ownership harder as prices climb.
There is a massive push towards the build-to-rent schemes. What was happening in the past is that developers were coming in and they would build property and then they would sell it to the local market for people to have a home or for people to have an investment property. What is happening right now, and the government is pushing this big time, are these build-to-rent schemes. And so the big funds, the big developers, big companies are gonna come in, they build these big complexes of units or townhouses, but they don't sell it. They're holding them so they could rent them out. And this is what public housing is actually becoming for the future. Now, What that means, because they're not selling them, the reality of the matter is there's less supply in the marketplace and the demand for actually purchasing real estate is still there. It's gonna start pushing the pricing of property up. Plus we've got a million people moving to Australia alone in the next 5 years and where are they gonna live? So I want you to think about that in terms of how the government has started to position people's frame of mind in how they think about houses, in how they think about renting.
