MB has argued repeatedly that the ‘build-to-rent’ (BTR) model is a fake affordability cure given that it will add a cabal of profit-dependent corporations to the housing “market”, which will inevitably increase their already monstrous lobbying power and pricing power.
A new report in The AFR suggests our hunch is correct with recent Australian BTR projects charging a 20% premium on traditional rentals:
A Charter Keck Cramer analysis of advertised rents at Mirvac’s LIV Indigo BTR development in Sydney Olympic Park and rents for nearby private rental apartments shows the median one-bedroom, one-bathroom apartment rent is 19 per cent higher than an equivalent build-to-sell unit, while the difference was 27 per cent for a two-bed unit.
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