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Build-to-Rent Homes: What They Are and What They Offer
- Bill Zhao
- Jul 23
- 2 min read
In New Zealand, the concept of build-to-rent homes has been around for a while, but you likely hadn’t heard of it until recently. This is because build-to-rent hadn’t gained serious traction until recently, and their newfound growth came as a response to New Zealand’s housing crisis.
What is Build-to-Rent?
Despite the broad terminology, build-to-rent (BTR) is a little more specific that it initially seems. The term excludes your typical suburban standalone home and instead refers to medium or high-density housing developments built specifically with the purpose of renting in mind. These developments are often professionally managed and owned by institutional investors. In a story by Gabi Lardies for The Spinoff, she notes that numerous bills facilitating BTR developments in New Zealand have come to pass over just the last three years.
What Do They Offer?
Renting a BTR home often involves long-term tenancy. It is not uncommon to see developments offering leases of up to 10 years, which can offer stability to both the tenant and landlord. BTR homes involve professional management and tend to be more predictable when it comes to rates, and given the recency in which these homes have risen to popularity, the residences tend to be much newer as well. Renters gain significantly more leeway in customising their homes and can expect to find various amenities in the complex, with many BTR developments offering shared facilities such as gyms, meeting spaces, and pools.
They’re Not for Everyone
Having modern units, facility amenities, and a typically city-centric location means that their rates are expectedly higher-priced than their regular rental counterparts, and there is no doubt that the creation of these developments is aimed at turning a profit. The higher price also means that tenants tend to be from higher-income households, limiting the market for these homes.
BTR homes may not be an option for many, and it does little to alleviate housing pressure for those in need, but it can provide a comfortable and convenient living space for those who can afford it.
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