The build-to-rent (BTR) sector in Australia is experiencing significant growth, with new data showing over 4,300 apartments were added to the market in 2024.

Knight Frank forecasts further expansion in 2025, with approximately 8,900 BTR apartments currently under construction and an additional 20,000 approved for development over the next five years.

Victoria remains the leader in the sector, with 25,538 units completed, under construction, or planned as of Q4 2024.

Meanwhile, New South Wales has 15,089 units, and Queensland 14,390.

According to Knight Frank partner John Paul Stichbury, the sector has been growing steadily since 2018, with 19,308 apartments either delivered or under construction and a further 40,191 in the pipeline.

The trend is also emerging in smaller markets, with the ACT seeing 1,723 BTR units completed or planned, while Western Australia and South Australia have 1,568 and 1,191 units, respectively.

The increasing momentum in BTR developments is reshaping housing supply and investment strategies, with potential implications for residential mortgage lending and rental market dynamics.