A dedicated tracker designed to follow the quarterly progress of build-to-rent (BTR) projects has been launched by the Property Council.

Produced in collaboration with JLL, Colliers, Savills, CBRE and Bayleys, the purpose of the tracker is to highlight the opportunity of BTR in providing quality, long-term rentals for Kiwis across New Zealand.

At the end of last year there were 850 BTR homes under construction across the country, with a further 3,395 in the development pipeline. Meanwhile, 1,307 BTR homes have been finished.

Rental market shift

Property Council chief executive Leonie Freeman says while Auckland is leading the way with 1,096 units completed, a further 742 under construction and 3,350 in the development pipeline, the council sees a huge opportunity for BTR to help alleviate the pressure on rental markets in places like Queenstown, Wellington and Tauranga.

“BTR not only has the potential to deliver significant new housing supply in our cities, it has the potential to transform smaller centres where tight rental markets have made finding a home – particularly one that offers options for long-term occupancy – difficult for renters.

In Australia and the UK, BTR is the fastest growing type of residential accommodation. Freeman says there is an appetite for similar growth and investment in New Zealand. However, potential overseas investors are being hampered by restrictive and uncertain regulations. Getting these settings right is critical to enabling growth in the BTR sector.

She says this goes for overseas investors and hardworking Kiwis whose KiwiSaver funds are invested in the sector.

“From a legislative standpoint, we believe we are more than halfway to truly unlocking BTR.

“The new government has recently honoured its commitment to introduce amendments to the Overseas Investment Act into Parliament as soon as possible. Alongside this, access to depreciation for BTR properties and ensuring the Residential Tenancies Act is fit-for-purpose remain crucial,” she says.

“This combination of legislative levers will help fuel new housing supply.”

In 2021, Property Council modelling suggested that with the correct settings in place, members could deliver up to 25,000 new homes over a decade.

Top six build-to-rent regions

Ranking	Region	Complete	Under construction	In the Pipeline
1	Auckland	1,096	742	3,350
2	Wellington	41	108	0
3	Waikato	69	0	0
4	Canterbury	59	0	0
5	Bay of Plenty	0	0	45
6	Otago	42	0	0
	Total	1,307	850	3,395

For the tracker, the Property Council has defined BTR as purpose-built or adapted long-term rental developments. It’s tracking developments of more than 20 units (as per the government’s definition) and under single management. It includes purpose built or adapted rental schemes owned or managed by a community housing provider or iwi, for the market.

Most developments built prior to 2018, any development with communal kitchens, any development that is council owned or leased, or sold to or leased out to Kāinga Ora – Homes and Communities, as well as any hotel rooms or serviced apartments, have been excluded.